The Point e-newsletter
January 2008
On Point with Chip Conley
By DAVID PARKS
Chip Conley is CEO and founder of Joie de Vivre Hospitality. Twenty-one years after its inception, the company boasts over 30 distinctive and unique hotel properties throughout California. Chip was named the most admired CEO for Innovation by the San Francisco Business Times and is the author of the recently released Peak: How Great Companies Get Their Mojo from Maslow. Recently, Chip sat down with Bluepoint’s David Parks to discuss his approach to leadership.
You have an incredibly successful business and you are a busy CEO. What motivated you to write a book?
Well, let me say, first of all, on a purely personal level, when I was a kid 12-13 years old, I wanted to be a writer when I was going to grow up.
I told that to my dad, and he said "You can't make a living as a writer" and I lodged that in my brain, and thought I never can be a writer. So part of it is just me wanting to do what I wanted to do when I was a kid, and I do enjoy the process of writing.
Yet doing that while you're a fulltime CEO of a company that's growing fast takes a toll. I talk a lot about job/career/calling, the three different kinds of dynamics of the relationship that you can have with your work, and as you move up that pyramid — job, career, calling — you move up the pain threshold, of how much pain you're willing to put yourself through. So, if you're actually pursuing a calling, you have a very high pain threshold, and you're able to do things that other people look at you and say "I couldn't do that".
How do you impart your vision at Joie de Vivre?
We are not like a McKinsey or a Google or most other companies for that matter. Half of our employees speak English as a second language, they don't have email addresses, they don't have voicemail, so the process of actually getting the message out, and creating a culture, is harder… a lot of it has to actually be in person.
We're the second largest boutique hotelier in the U.S., but we're only in California. This is completely conscious. It's not because no one has asked us to do something outside California… Being able to continue to have a real culture that is grass-roots-oriented, where senior leaders of this company are going to properties and meeting with the staff directly — that's something that is easier done when we're geographically closer.
As you think about your personal experiences, what is the most powerful leadership development experience you’ve ever had?
There are many. I think the one that most comes to mind was when we went off-site with a team of about 35 senior managers to Stinson Beach, CA. We studied Southwest Airlines for three days. We dissected Southwest Airlines as an organization, and the whole retreat was based upon saying, “What is Southwest Airlines doing right that we can apply to our company?” It was fascinating. It was a really wonderful, deeper version of best practices in a company that we didn’t compete with directly.
What does leadership development look like at Joie de Vivre?
We do a lot of things. We’ve got everything from Joie de Vivre University, (our most formal approach) which is a series of courses taught every quarter, to a couple of different training tracks for managers, junior-level managers and more senior-level managers.
For those who are really serious about their growth, we have informal mentorship programs that really help ally people with someone who can teach them on an ongoing basis. I’ve done that for a dozen employees as a mentor, and it’s been a very valuable way to help grow our people.
Can you share a good example of how leadership development comes to life and is integrated into the fabric of Joie de Vivre?
Actively recognizing our employees is a good example. Studies show that the number one reason employees leave their job is the lack of recognition they feel from their direct supervisor.
At our executive committee meetings every two weeks we integrated the idea of ten minutes of recognition at the end of the meeting for people in the company. So the VP of Sales talks about something that a salesperson in one of our hotels did. And then the VP of IT will say, “I’ll go and say thanks to that person.” So, a few things have happened there. Number one, we end our meetings on a positive note. Number two is that person in the field gets recognized, and that feels good. But number three is they get recognized by someone outside their department. So an IT person is recognizing a salesperson because the VP of Sales brought it up in a meeting. All of a sudden the silos that naturally occur in a fast growing company like ours are much less likely to occur.
We’ve taken the insight of a recognition theory and applied it. We enjoy the process of exercising it and we enjoy the end of our meetings too.
Do you actively coach and what do you see as the key to coaching success?
I believe asking good questions is the best way for me to help staff to see things that they might not have seen otherwise. I’m just shifting to a place in my life where I’m moving from, “Okay, well, here’s my proclamations of what I think it would be good for you to do” to being a little bit more Socratic in my approach by actually getting them to ask those good questions themselves.
What’s your pearl of wisdom for those assessing the world of leadership development?
I guess my pearl of wisdom is that there’s an awful lot of thoughtful and sometimes not-so-thoughtful business books out there. The key is to take what’s out there in the world, synthesize it in a way that works for you personally, for your world view and your approach to business, and then your company. That’s someone who’s really top of their game as a leader.
Chip Conley is the CEO of Joie de Vivre hotels and the author of several books, including Peak: How Great Companies Get Their Mojo from Maslow. Visit Chip’s website at www.chipconley.com
David Parks is VP Business Development at Bluepoint Leadership Development. He can be reached by email.
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bluepoint wins vendor innovation award
Bluepoint Leadership Development was named by Bersin & Associates as a winner in the Vendor Innovation category of their annual Learning Leaders Award announced this week.
Twenty-two organizations were named for excellence in training and development, including companies such as HP, SAP, Wachovia and Rockwell Collins. The awards recognize the effective and efficient deployment of learning and development which results in significant business improvement.
“The 2007 Learning Leaders represent the best of the best,” said Josh Bersin, President of Bersin & Associates. “Bluepoint was acknowledged for its outstanding work in customizing and deploying leadership development based upon The Leadership Experience workshop.”
Bersin & Associates is a research and advisory firm focused solely on enterprise learning and talent management. They provide in-depth market analyses designed to guide professionals in making fast and confident decisions on training and development.
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what will happen if nothing changes?
By GREGG THOMPSON
Many of us who lead organizations go through a very similar routine this time of the year. We start by admonishing ourselves for the mistakes of the past year - the projects left undone and the opportunities not seized. We grit our teeth, clean off our desks, start a fresh notebook and resolve to make significant changes in the way we will work in the coming year. Year after year, the same resolutions are made:
- I’ve just got to get organized. (“If I can just create a better way of dealing with this relentless stream of email, improve my scheduling and sort out this mess of papers in my briefcase, I’ll be able to spend more time doing the really important leadership stuff.”)
- This year, I will set priorities. (“I’ve got to stop doing a bunch of things, no matter how cool and interesting, and discipline myself to do only the strategic stuff.”)
- I promise to delegate more. (“If I can only get others to do the things I don’t want to do and to work as hard and smart as me, I’ll be free to do the high value-added stuff.”)
I have news for you (and me). While these are worthy goals, the truth is we will all still be at the same spot next year, fussing about the way we are organizing, prioritizing and delegating. But what would happen if we were determined to make a real change in the way we lead our organizations this year? Perhaps we should ask ourselves the more compelling question…what will happen in our organization this year if nothing changes in the way we lead?
Here are seven leadership resolutions you might consider that will make a real difference in your organization in the coming year. Which ones will provide the biggest payoffs? Do all seven, and I promise that you will have the most rewarding year of your leadership career!
- Craft a big, bold, breath-taking story and tell it every day. What is the most exciting, rewarding, and scariest future you can imagine? What great battles will be won, treasures found and people freed? Paint the story in full color. What does the future look like? How are we going to get there? How is tomorrow going to be much better than today? People want to be part of an important story. Tell it to them and help them find their own starring role.
- Multiply the strength of your leadership connections. Consider for a moment the 8-10 individuals with whom you share management and leadership responsibilities. How much more effective would your leadership team become if you dramatically strengthened your personal connection with every one of these people? You have probably created a mutually acceptable status quo with these individuals so change will not be easy. Are there some difficult conversations that you need to have? Try this: honor their uniqueness; share more of yourself; learn about them; ask how you can serve them. Be careful, this is very potent.
- Act with exceptional compassion and kindness. You are not the only one feeling a bit beaten up these days. The members of your organization are faced with many of the same challenges that you face…imperfect products, unpredictable markets, insatiable customers, disappointing staff performance. Seek out ways to show your humanity every day. Treat everyone in the organization with dignity and respect, especially those who are struggling. They will walk through walls for you, but do not do it for that reason. Do it because it is the right thing to do. We spend much of our waking lives inside organizations and you have the power to make these places where the human spirit can thrive or die. Use this power well.
- Tell the absolute truth. Stop spinning, sugar-coating and avoiding. You’ll be amazed at how many people start listening to you. Everyone wants to improve the communication throughout their organization but what about simply setting a new standard for honesty…starting with you. How much more effective would your organization be if the half-truths, positioning, sacred elephants and face-saving were eradicated? The tough part is that you cannot make this happen by mandating it. You must go first. You must model it.
- Hold everyone accountable. Accountability is a very good thing. It is not tyranny. The caring leader insists that people do what they say they will do. When you hold people accountable, you are saying that their work is important. You are saying that they are important. Every time you let a deadline slip or a deliverable go incomplete, you are discounting the person whose job it is to deliver on these commitments. Make it a habit to ensure that every piece of work is accompanied by a personal commitment. Measure. Give feedback. Initiate consequences. Celebrate being part of an organization that keeps its promises.
- Confront underperformance with a twist. You know in your heart-of-hearts who is under-performing in your organization. Make a list. Commit to seeing that this performance changes early this year. Now here’s the tough part. Before you take any action, ask yourself these questions – “What is my part in this situation? How have my actions or lack thereof contributed to this situation? What do I need to do differently?” Approach the individuals in question and describe your responsibilities and personal commitments to change. Then, and only then, it’s their turn. You may need to do nothing else.
- Be distinctively you. What would you get if you could put all of the leadership qualities of Bill Gates, Gandhi, Mother Theresa, George Washington, Jack Welch and Winston Churchill into one individual? Probably a bland, non-descript person indistinguishable in the crowd. These men and women made a difference because they had the courage to be themselves. Have you forgotten who you really are? What excites you these days? What are your passions? Your obsessions? Where do you want to make your mark? When you are at your best, what are you doing? Maybe it’s time to figure out what is most important to you, tell everyone around you, and let this fuel your leadership.
Why not make this your best year ever as a leader. What will happen if nothing really changes?
Gregg Thompson is President of Bluepoint Leadership Development. He can be reached by email.
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Corporate Leadership
By RON CROSSLAND
My wife and I go to the same house for a new year’s party every year. It’s a pleasant way of celebrating with a great group of friends. Each year everyone at this party predicts what the Dow Jones Index will be at the end of the coming year. Last year I predicted the Dow would end up at 13,500. I’m writing this article on December 29th and the Dow closed yesterday at 13,359. I might wind up being close to the final bell’s count, but I had no idea the wild ride the markets would take over the course of 2007. The amount of fluctuation this year has driven investors mad, caused financial distress or ruin for many, and caused general unease.
The culprit for the roller-coaster ride that most are writing about is the liquidity crisis caused by subprime mortgage lending. Like most simple explanations this one has the ring of truth, but doesn’t point to the underlying factors that allowed so many people to borrow money that should never have been loaned. Prick the skin of this crisis and you will find poor commercial leadership.
Some folks want to blame the regulatory agencies for not exercising greater control over the lending practices and policies. This is like saying the state is responsible for the lending institutions bad behavior.
Others lay the blame at the feet of enterprise itself. This is like saying capitalism is amoral (which I would argue it is not) and its excesses are a normal part of the dynamics of free markets.
Some want to blame MBA schools for searing the economic dictum “the purpose of a company is to increase shareholder value” on the minds of corporate managers everywhere. This is like blaming education for the ethical dilemmas of our age.
I want to blame the individual leaders that were involved in the lending process. Lenders knew they were not just making risky loans, but making bad loans. The pace of lending and the laxity of individual loan managers everywhere caused both unsecured loans to be made as well as loans provided upon fraudulent basis. Loaning without security is incompetent. Loaning against fraudulent applications is either incompetent or collusion with the liar asking for the loan. Either of these is a failure of leadership. And this failure happened one loan at a time, one manager at a time.
Just because you can make money in a situation doesn’t mean you should make money. Some individual managers may have poor moral compasses or lack sufficient understanding of what they are doing or simply do as they are told. These failures of leadership however do not extend to all managers. Plenty of people knew what they were doing was beyond risky – it was wrong, either ethically or from a basic business competence point of view. The fact that they didn’t stop it means they were at fault, in my opinion. Blaming the regulatory agencies, commercial greed, or financial education is inadequate.
Just because the problems were systemic doesn’t mean individuals can shed their personal responsibilities. At the end of the day commercial leaders at all levels need to take more personal responsibility for the role they play in the overall scheme of things.
Ron Crossland is Chairman of Bluepoint Leadership Development. He can be reached by email
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