By Peter Redman
Each week, the Financial Post will profile one winner of Waterstone Human Capital’s 2008 10 Most Admired Corporate Cultures program. This week, SanamIslam spoke with Kathleen Taylor, chief operating officer of privately held Four Seasons Hotels and Resorts, about how the company demonstrated excellence in the five areas used to evaluate companies nominated for the program.
Company: Four Seasons Hotels and Resorts
CEO: Isadore Sharp
Number of employees: 40,000 worldwide; 1,600 in Canada
Annual revenue: N/A
Vision and leadership Many years ago, Isadore Sharp the founder of Four Seasons Hotels and Resorts, created the company’s Golden Rule philosophy, which involves “treating
all others as we would wish to be treated.” This rule applies to interactions with guests, business partners and employees. Mr. Sharp also outlined the company’s goals, beliefs and principles in a document intended to guide employees in their relations with each other and guests. “Our founder had a theory that you couldn’t have a guest focus in a luxury hotel business without an employee focus,” Ms. Taylor says. The emphasis on treating others well has inspired a higher level of guest service, which in turn has resulted in Four Seasons’ global success, she says.
Cultural alignment, measurement and sustainability Four Seasons distributes surveys to employees at its corporate offices and hotels each year to understand employees’ attitudes
toward company culture. Annual performance reviews also measure culture: Senior hotel managers are evaluated on their property’s alignment with company culture, and all hotel employees are judged on their embodiment of company values.
“We’re always thinking about how the business model and the culture and the needs of our employees align with eachother,” Ms. Taylor says. The company’s annual performance evaluation not only measures product and profits, but also achievement with people in terms of development, mentorship and interaction.
Rewards, recognition and innovative business achievement Four Seasons has several award programs, including employee of the month, quarter and year at each of its hotels. More informally, leaders congratulate and thank managers for extraordinary work on a consistent basis, and managers do the same withemployees. “It’s as much about daily interaction with management and peers as it is about awards,” Ms. Taylor says.
Corporate performance For several years now, Four Seasons has been a profit leader in the luxury hotel industry, as well as a leader in RevPAR, or revenue per available room, the measure used to evaluate the efficiency, effectiveness and overall success of a hotel. The company is renowned for its high level of customer satisfaction, which has led to its hotels (it has 82 in 34 countries) winning more awards for being the best in a city or region than any other hotel group in the world, Ms. Taylor says. Four Seasons is growing at a dramatic rate, with more than 40 projects under development. “It’s the highest number we’ve ever had. That sends a message around the perceived success of the company and its growth, and the number of partners that want to undertake a Four Seasons project,” she adds.
Corporate social responsibility A company taskforce targets three areas if CSR: community support, environmental sustainability and cancer research. “Corporate social responsibility is a big focus for us. We’re a very philanthropic organization both monetarily and in our time and effort,” Ms. Taylor says. The company is the main sponsor of the Terry Fox run, and raised $7-million in 2007. Four Seasons also has an active green council that works to eliminate water bottles, pumps up the company’s recycling program, tackles electrical and heating inefficiencies, as well as other environmental issues.
