Leadership and Development
Finance & EconINTRODUCTION
Bill Marriott is the Chairman and CEO of Marriott International. He is 81 years old and manages a US $12 billion lodging empire. Bill Marriott has been a leader in this industry for more than fifty years and has enabled Marriott to grow from a small scale family business into a successful global hotel chain with more than 3000 hotels around the world and more than 151,000 associates. Bill Marriott has been the leader of Marriott since 1956 (Repositioning Marriott for Global Opportunity: July 2009) He received the IABC Excel Award in 2008 and has really progressed fast during his time at Marriott. He became Vice President and a member of the Board of Directors in 1964 and within the same year was named President of the company. He became Chief Executive in 1972 and the Chairman of the Board in 1985. (IABC)
Marriott International has nearly 3200 hotels around the world as well as other brands including Ritz-Carlton, Renaissance, Courtyard, and Fairfield Inn. The corporation has properties in 66 countries across the globe and its territories range from Armenia to Vietnam. In purely ownership terms, Marriott has exclusive ownership of only six hotels since the corporate strategy was to sell off real estate during the 80s and to have minimum capital investment and minimum real estate risk. Thus, Marriott operates only about half of the rooms in its systems which mostly comprise of the upper end hotels and franchises the remaining hotels. (Gunther: 2009)
BILL MARRIOTT’s LEADERSHIP VISION
Bill Marriott’s leadership vision is fairly simple and straightforward – to make Marriott the number one lodging company in the world. To achieve this, Bill Marriott has always focused on taking care of his customers, to expand his operational knowledge and to develop a highly skilled and diverse workforce. With this leadership vision in mind, Bill Marriott has enabled Marriott to grow and enjoy customer, owner and franchise satisfaction. This vision has been realized through Marriott’s commitment to provide a place for people to grow, to take care of its employees and to take care of its customers. Bill Marriot appears to be an excellent example of a 360-Degree Leader, someone who knows how to influence others from whatever position he finds himself in. (Maxwell, J., 2005)
LEADERSHIP BEHAVIOR OF BILL MARRIOTT
Some of the key characteristics and/or behaviors that have been demonstrated by Bill Marriott during his tenure as a leader at Marriott include the following:
· Placing importance on getting things done.
· Ensuring that the field of play is clearly understood by ensuring that all relevant information about all major aspects of the business is available.
· Analyzing the information and making decisions based on this information. According to Bill Marriot, "I don't believe in analysis by paralysis, but the older I get, the more important I believe analysis is the key to making good decisions." (Analysis is the key to making good decisions: November 2009)
· Following the strategy of achieving more and more. More satisfied customers, more happy employees, more hotels, more profits, more shareholders etc. (IABC)
HOTEL MANAGEMENT - BILL MARRIOT'S LEADERSHIP PRINCIPLES
Bill Marriot's core reason for success is the fact that he spends as much time as possible in his hotels. This enables him to gauge the challenges that his employees face in this industry as well as how they are feeling about their employer and their work environment. Not only does he keep close contact with his people, Bill Marriot makes it a point to note down everything on 3x5 cards which clarifies a large amount of things that he observes during his visits to the different hotels as well as identifies the areas of improvement. Keeping in mind the fact that he is a leader of nearly 3200 hotels it is impossible for him to visit all of them very frequently but through his leadership skills, Bill Marriott ensures that his managers follow his leadership strategies and at the same time keep him informed through email or letters as to how things are moving on and what areas need improvement. Thus, a major leadership principle of Bill Marriott is a high level of involvement in the people he is leading and the business he is managing. (The Front Lines of Leadership: August 2008)
He personally visits nearly 250 hotels each year and makes it a point to meet all his associates, guests and managers. He also ensures that he talks to everyone involved in the running of the hotel – from the top associates to the bellman. Bill Marriott’s philosophy is: “If you’re in the service business and your name is above the door, it’s important for people to be able to link a face to the name,” says Bill Marriott. “I want our associates to know that there really is a guy named Marriott who cares about them, even if he can only drop by every so often to personally tell them so.” (IABC)
Another leadership principle of Bill Marriott is his commitment to diversity and inclusion. It was primarily under his leadership that Marriot hotel was among the first companies to include women and follow equal employment opportunity principles. Out of the 3200 hotels of Marriott, 400 are owned by women and minorities. Not only that, Marriott has always made it a point to work with diverse suppliers to ensure equality and diversity. This commitment to diversity is one of the key achievements of Bill Marriott as a leader and since this initiative was taken by him, many women have reached executive level positions at Marriott and run some of the most profitable Marriott hotels in the world. According to Bill Marriott, the women at Marriott are one of the major reasons why the National Association of Female Executives has put Marriott in its top ten lists. Thus, Bill Marriott's leadership principle of giving everyone equal opportunity and being a welcoming and inclusive employer has enabled Marriott to grow even more and has given it considerable competitive advantage. (Marriott’s Commitment to Diversity and Inclusion: May 2009)
A key leadership lesson that Bill Marriott actively promotes is the importance of delegation. According to Bill Marriott, it is always best to manage operations through delegation and to assign tasks to those who have expertise in that particular area. He is also against the obstacles created by bureaucracy and believes that while it is important for the boss to stay informed, a good leader should have the ability to give a certain level of autonomy to his employees.
An additional leadership principle of Bill Marriott is to listen and learn. According to this very successful leader, listening is the ultimate opportunity to learn and the information obtained through listening is even more effective than that which is obtained from any direct reports or senior staff. That is why Bill Marriott believes in hearing straight talk from his associates.
A good leader always takes care of his employees. This is especially true in the hospitality sector because taking care of employees eventually results in the employees taking care of the customers and this not only keeps the customers satisfied but ensures that they keep coming back to Marriott. This leadership philosophy has helped Marriott earn various best awards from Fortune, Computer World, Hispanic Business etc. (IABC) and the same philosophy has consistently enabled Marriott to be named as the most admired company, the best place to work and the top company for minorities. In fact, this is the same philosophy that had been adopted by Bill Marriott’s parents who once stated “Take care of the employee, and they’ll take care of the customer, and the customer will come back.” (IABC Awards)
A key leadership principle has also been the promotion of democracy through progressive free market practices and a commitment to foster an open and transparent business culture. “Bill Marriott has dedicated his life to the principles of a free and democratic society which he has translated into an organization recognized not only as a global leader in its industry, but as one of the most admired companies," commented Laurence Geller, Chairman of The Churchill Centre. "Bill Marriott has come by his high principles honestly, carrying forward and building upon progressive business philosophies first set forward by his parents and the belief that 'Victory will never be found by taking the line of least resistance.” (Newswire: 2009)
Providing employees the opportunity to grow and a clear career path is another leadership strategy that has really worked for Bill Marriott. He has always believed that companies thrive by allowing employees to grow. That is why a large majority of Marriott’s senior managers and general managers have progressed over the years. In fact, Marriott’s head of North American lodging operations used to be a waiter while the head of all international hotels started as a security guard. Bill Marriott himself started working in the kitchen in Salt Lake City for four years. (Nelson: 2009)
Bill Marriott’s leadership success is also attributed to his legendary attention to detail. He is very vigilant about adhering to standard operating procedures which is one of the reasons why most of his hotels manage everything with flawless execution. Overall, Bill Marriott has focused on three key intangible assets – employee engagement, communication and culture which have enabled Marriott to be different from the rest of the hotels.
According to Leadership in a (Permanent) Crisis in 2009, leadership can generate more leadership deep in the organization. In order to success, Marriott delivered high performance businesses. He implemented a new internet platform and a unique search engine that helped that helped the company grow annual online sales to $4 billion of making Marriott.com. It is now the largest hotel company website in the world. (Harvard Business Review: 2009)
A prime example of Bill Marriott’s excellent leadership style and his ability to deal with a crisis situation is the 9/11 incident. When terrorists attacked New York City’s World Trade Center, the Marriott hotel was totally destroyed. However, because of Marriott’s effective crisis communication and evacuation plans, not a single guest was hurt. In fact, two Marriott associates were killed while trying to help evacuate people indicating the high level of commitment and loyalty which Bill Marriott has been able to command from his employees. Not only that, Bill Marriott visited the site within a few days and also established a Marriott Associate Assistance Fund as well as expanded the company’s leave sharing program. Despite loss in revenues, the leader kept all his employees on the company’s payroll and handled the situation in the best possible manner.
EVIDENCE OF BILL MARRIOTT’s SUCCESSFUL LEADERSHIP
· 100 shares of Marriott in 1953 were worth US $1025 as compared to US $2.9 million in 2004. This indicates a 16.5% annual return over 52 years. . (IABC Leadership in Communication)
· According to the Associate Opinion Survey conducted in 2006, nearly 80% of Marriott associates are satisfied with their employment experience; 81% believe that they have the information they need to do their job well; 75% are moderately engaged with the company; more than 70% of hourly associates responded favorably with respect to questions regarding the effectiveness of their leaders and their relationships with their fellow associates; nearly 90% expressed a favorable attitude toward their leader and colleagues. (IABC Leadership in Communication)
· According to a Guest Satisfaction Survey which helps measure guest satisfaction at Marriott, overall guest satisfaction has increased from 78.4% in 2002 to nearly 80.7% in 2007. . (IABC Leadership in Communication)
· According to the JD Power & Associates 2007 North America Hotel Guest Satisfaction Study which measures overall guest satisfaction across six segments, the Ritz-Carlton is the number one brand in the luxury segment while Marriott is Number 2. . (IABC Leadership in Communication)
· According to the American Consumer Satisfaction Index, the highest scoring company in the hotel industry is Marriott International with an increase of nearly 5% to 79. . (IABC Leadership in Communication)
· Marriott has been awarded the best hotel chain in the world for 2006 by Business Traveler; the Best Hotel Chain by Executive Travel; the Best Customer Experience 2007 by Luxury hotels & Resorts Luxury Customer Index; the Number 1 brand by Trip Advisor and the World Savers Award by Coned Nasty Traveler. . (IABC Leadership in Communication)
BILL MARRIOTT – A TRANSFORMATIONAL LEADER
Bill Marriott's style of leadership classifies him as a transformational leader. A transformational leader is one who leads by inspiration rather than by transactions such as rewards and punishment. This style of leadership is known for enhancing performance. Transformation leaders generally have a very clear vision and have the ability to view the future in specific terms and are able to excite their followers into believing in that future. Such a leader does not only have a vision but he is able to sell this vision to his followers. He has energy and commitment and uses whatever tools he requires to convince others that the vision is achievable. “Transformational Leaders are always visible and will stand up to be counted rather than hide behind their troops. They show by their attitudes and actions how everyone else should behave. They also make continued efforts to motivate and rally their followers, constantly doing the rounds, listening, soothing and enthusing. It is their unswerving commitment as much as anything else that keeps people going, particularly through the darker times when some may question whether the vision can ever be achieved. If the people do not believe that they can succeed, then their efforts will flag. The Transformational Leader seeks to infect and reinfect their followers with a high level of commitment to the vision.” (Changing minds) Bill Marriott possesses all these traits and has been able to achieve growth for Marriott by this style of leadership.
Some of the key components of transformational leadership that have been depicted by Bill Marriott include the following: (Cherry, Kendra)
1. Intellectual Stimulation - Bill Marriott has been very successful in encouraging creativity and initiative among his followers. He has also encouraged all the leaders at each and every Marriott hotel to explore new ways of doing things and to learn from new opportunities.
2. Individualized Consideration: From the very beginning Bill Marriott has believed in listening to his employees, to paying attention to detail and to always offer support and encouragement to his team. Transformational leaders like Bill Marriott always ensure that the lines of communication are always open and that each and every employee is recognized for his contributions.
3. Inspirational Motivation: Bill Marriott's vision for Marriott has always been very clear and specific. The secret of his leadership success lies in his ability to pass on this vision clearly to his followers and to inspire them to follow his dreams with the same passion and motivation.
4. Idealized Influence: Bill Marriott is considered to be one of the most successful leaders in the hospitality sector. He acts as a role model for many of his followers, another key characteristic of a transformational leader.
IS BILL MARRIOTT A PERFECT LEADER?
No leader is perfect. Bill Marriott is no exception. While the history of his leadership and the various achievements associated with his tenure as Marriott’s CEO and Chairman is exceptional, there are several who believe that Bill Marriott comes on too strong as a leader and that his leadership style can be too stifling for those who work for him. For example, he visits every location and observes even a speck of dust at any of the hotels. He is unforgiving as far as any deviation from quality is concerned. He can be especially difficult to deal with because of his high level of expectation and his uncanny attention to detail. Not only that, Bill Marriott even visits his competitors to check out what they are doing. “Marriott visits about 200 hotels a year, inspecting kitchens and signing autographs for rank-and-file workers. He checks out rivals too. "I sneak into competitors' kitchens more than you'd know," he says.” (Gunther: 2009) However, despite these traits, Bill Marriott commands a great deal of respect and that is purely because he is able to inspire his followers to aim for the goals and to attain the overall vision of the company. He might not be a very democratic leader but he has the ability to transform. That is why he can be classified as a transformational leader – one who has the ability to transform his followers in a way that they are truly motivated to achieve what their leader wants to achieve.
CONCLUSION
The hospitality sector has very few leaders like Bill Marriott. The energy and drive that Bill Marriott possesses has allowed Marriott to retain its leadership status and to aim for more and more in terms of revenue, satisfaction and reputation. "If there's one executive in the hotel industry who is revered, it is Bill Marriott," says NYU's Hanson. (Gunther: 2009)
References
1. Analysis is the Key to Making Good Decisions. (2009) Marriott on the Move.
Retrieved. February 18th 2010
2. Heifetz, R. Grashow, A. Linsky, M. (2009). Harvard Business Review. Leadership in a (Permanent) Crisis , Vol. 87, no 7/8, July-Aug 2009, p62-69.
3. Harvard Business Review. (2009). Transforming Leaders. Vol.87, no 1, Jan 2009, p10.
4. J.W. Bill Marriott to Receive Churchill Center Award For Leadership. (2009) PR Newswire. Retrieved February 18th 2010 http://www.ulitzer.com/node/1179085
5. Kendra, Cherry. What is Transformational Leadership? Retrieved February 18th 2010 http://psychology.about.com/od/leadership/a/transformational.htm
6. Leadership in Communication Series. Retrieved February 18th 2010.
http://www.iabc.com/awards/leadership/
7. Marriott’s Commitment to Diversity and Inclusion. (2009) Marriot on the Move. Retrieved February 18th 2010.
8. Nelson, Bob. (2009) An Interview with Bill Marriott. Retrieved February 18th 2010 http://meetingsnet.com/corporatemeetingsincentives/news/bill_marriott_interview_0301/
9. Repositioning Marriott for Global Opportunity. (2009) Marriott on the Move. Retrieved February 18th 2010
10. The Front Lines of Leadership. (2009) Marriott on the Move. Retrieved February 18th 2010 http://www.blogs.marriott.com/marriott-on-the-move/2009/08/the-front-lines-of-leadership.html
11. Straker. D.(2008) Changing Minds: in detail. Transformational Leadership. Published by Syque Press. Retreived February 18th 2010
http://changingminds.org/disciplines/leadership/styles/transformational_leadership.htm
Bibliography
C., M. J. (2005). The 360-Degree Leader Developing Your Influence from Anywhere in the organization.
p.18