Wednesday, June 26, 2013

CEO Arne Sorenson: Succeeding the Marriotts

Arne Sorenson, CEO of Marriott International for just over a year, speaks to Forbes about the storied history that lies behind him and the millennial, more tech-savvy future ahead of him. The founder of the hotel company was Bill Marriott, and he was CEO for 45 years. His son, Bill Marriott, Jr. succeeded him, and had company reins for 40 years. These facts alone must've made this a nerve-wracking, courageous move on Sorenson's part. He is the first non-family member to head the company.

Forbes staffer Halah Touryalai, who interviewed Sorensen, offered a more complete take on Marriott International in her article:  Marriott's Upgrade:  New CEO Arne Sorenson Freshens Up The Brand For Millennials.
The 54-year-old Sorenson has three primary challenges. The first is cultural: How does an outsider run a company that has been managed by one family for almost a century? The second is strategic: How does a system that has mastered American tastes and whims continue to win as its client base changes and as the company rapidly expands around the globe? And the third is financial. Had you spent $1,025 for 100 shares of Marriott when it went public in 1953, and reinvested dividends for the original company and the six spinoffs that ensued, your investment today would be worth $5.5 million. There’s a six-decade track record of 15%-plus annual returns. That’s a big number for a CEO relying on developers, and who has a stated goal of managing 1 million rooms in the next decade–a figure that would easily topple IHG, owner of Holiday Inn hotels, making Marriott the largest hotel-management company in the world.

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What do you think about the interview and article? What have your experiences been, if any, of staying at a Marriott Hotel?

Thursday, June 20, 2013

Performance Imperatives of Staff Engagement

Staff engagement offers one of the most compelling efforts an organization can initiate and sustain.  Engaged staff are those who are visibly and genuinely keen to do their job.  They understand what is most important to the organization, and they do their utmost to support it.  They 'go the extra mile,' when it comes to tough assignments or deadlines.

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Writing for Gallup Business Journal, Susan Sorenson noted in her article - How Employee Engagement Drives Growth - a refrain that Gallup has researched and emphasized for several years:
Concentrating on employee engagement can help companies withstand, and possibly even thrive, in tough economic times.
She presented the following graphic as well.  The positive results of staff engagement are consistent not only across these nine business indicators, but also over time from one meta-analysis after another.

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"Measurement is one thing, what you measure is another," says Jim Harter, Ph.D., Gallup's chief scientist of employee engagement and well-being.
To elaborate on Harter's point:  An organization ought to clarify, first, what it's trying to accomplish and how engagement will help accomplish that aim.  Second, the organization has to make sure that whatever it measures actually speaks to engagement vis-a-vis its aim.  Finally, it must have the proper tools to measure precisely this, that is, tools that have construct and criterion validity.

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Staff engagement may be deemed one of those soft (i.e., people) initiatives, but unquestionably it has hard impact on business (i.e., results).

A Well-Delivered "Ouch!" for Airlines

In a post on Google+, which referenced their recent article - If the World Were Run Like Airlines - The Wall Street Journal asked,
What if other industries were run like airlines? Prices for sandwiches would double during the lunch rush. Hotels would charge for shampoo.
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I commented,

I'd say this article is a well-written, well-delivered "ouch!" for the airline industry. The difficulties and complexities of their business notwithstanding, there must be a simpler, more reasonable way of pricing!

Thursday, June 13, 2013

What is Ron Villejo Consulting

What is Ron Villejo Consulting

High-impact consulting
For top leaders

What is our mission?
Serve your purpose
Achieve target results
Create lasting impact

What is our approach?
Effective, leading-edge
To advise, coach, challenge

Based on Theory of Algorithms
Using The Core Algorithm

Partner actively with you
Build innate capabilities
Optimize efforts
Realize potential

Want to know more?
Let's talk!

Ron Villejo, PhD
Managing Director
Ron Villejo Consulting

Value, delivered.