Chapter 94 - Without Reservations: How a Family Root Beer Stand Grew into a Global Hotel Company
Today’s Chapter is based on the book “Without Reservations: How a Family Root Beer Stand Grew into a Global Hotel Company” by JW “Bill” Marriott Jr.
In this book, JW Marriott Jr goes over the reasons for the success of Marriott International. Notably, he goes over the fundamental principles of the company which can be summarized into five brief aspirations: Put People First. Pursue Excellence. Embrace Change. Act with Integrity. Serve Our World.
Here’s what I learned:
Put People First
“Businesses don't succeed or fail. People do.”
— S. Truett Cathy
As we can see from the company’s fundamental principles, it is clear that the foundation of Marriott’s success lies in its unwavering commitment to putting people first. This philosophy is deeply rooted in the company’s culture. Bill Marriott explains that “Culture counts. In Marriott's case, our culture results in measurably lower employee turnover and higher customer satisfaction, a winning combination that boosts our profits and pleases our shareholders.”
As a matter of fact, this principle comes from J.W. Marriott Sr who once said, “Take care of your employees, and they'll take care of your customers.” This principle has guided the company for years, leading to a culture where employees feel valued and respected. When employees know that their problems are taken seriously, they are better equipped to deliver their best on the job. This creates a positive feedback loop where satisfied employees lead to satisfied customers.
“Marriott still draws its strength today from our deep belief that treating our associates... with the respect they deserve helps them do a phenomenal job for our guests.”
— Bill Marriott Jr.
Furthermore, Bill Marriott Jr. believes in empowering his employees to excel. As such, the importance of training is also emphasized in Marriott’s corporate culture. As he explains, “Marriott's commitment to training is common sense. We can't expect our associates to do their jobs well if we haven't shown them how.” By investing in employee development, the company ensures that its associates are not only skilled but also confident in their roles.
Similarly, Marriott Jr. mentions it is also important to set a company’s culture where promotion from within is encouraged. The reason is simple; this commitment to internal growth fosters loyalty and motivation among employees. At the time of the writing of his book, Marriott Jr. mentions that one out of two managers are promoted from their hourly ranks.
“If your employees don't feel supported, they're not likely to give their best on the job.”
— Bill Marriott Jr.
This concept of putting employees first in hospitality businesses reminds me of how Isadore Sharp succeeded at Four Seasons. In fact, Sharp quickly understood that the success of Four Seasons would rely on the exceptional services provided by his employees, especially those on the frontline. As he once said, “Four Seasons is the sum of its people—many, many good people.”
As such, Sharp was influenced by the Golden Rule which states that one should treat others as they would like to be treated. He believed that treating employees well was the key to providing exceptional customer service, and therefore, he made it a priority for senior managers at Four Seasons to ensure that their employees were well-treated. As he once said, “Our greatest asset, and the key to our success, is our people.” By treating his employees well, Sharp was able to build a reputation for Four Seasons which created a positive feedback loop that allowed the company to get first choice of fresh graduates in the food service and hospitality industry.
“Our customer-front line relationship is crucial. Customers seldom see or talk to you. They interact almost solely with our front line, three to seven junior employees. If that contact disappoints the customers we want as lifetime patrons, they become ex-patrons. But when our employees remember them, greet them, know what they want and provide it quickly, they create a loyal customer whose referrals and long-term repeat business can often run well into six figures. That’s a cycle of success, dependent entirely on junior employees.”
— Isadore Sharp
Pursue Excellence
“I want to repeat that it is our goal to be the best, but not necessarily the biggest, contracting organization on earth.”
— Peter Kiewit
Pursuing excellence is another core value at Marriott which drives the company to constantly improve and innovate. To do so, Bill Marriott Jr. believes in hiring general managers that are hands-on managers. As he once said, “The reaction of staff to the GM is the ultimate litmus test of how well a hotel is run.”
If associates are happy to see their manager, it indicates strong leadership and effective management practices. explains that a hands-on approach allows managers to quickly identify and address issues before they escalate. He mentions that “If a manager is hands-on... she can pick up immediately on problems, concerns or issues.”
The pursuit of excellence can only be done if the company is consistently listening to feedback from both employees and guests, and this can only be done when the general managers are hands-on and are ready to listen. In fact, Marriott once that “We count on our guests to tell us what we're doing right and wrong.”
“Our ambition is nothing short of becoming the number one hospitality company in the world.”
— Bill Marriott
Furthermore, Marriott Jr. believes that excellence can only be pursued when a company is meticulously in every aspect of the business. He explains that “True excellence includes taking care of the smallest details, even when they’re not visible to your customers.” This commitment to detail ensures that guests receive a consistent and high-quality experience, which is essential for building brand trust.
This relentless focus of pursuing excellence comes from Bill Marriott’s father who first founded the company and was always seeking perfection. Bill Marriott describes his father as “never satisfied with anything. Perfection was one notch below desired result.”
This concept of never being satisfied and always pursuing excellence reminds me of the concept of Mr. Cha Buduo established by Lui Che-woo. As we have seen previously, in his book, Lui presents a great fictional character to remind himself of the need of constant innovation. He explains that he resents Mr Cha Buduo (”Mr. Close Enough”), who is easily complacent does things half-heartedly and that he prefers “Mr. Why” who is consistently asking questions such as “is there a better solution?”. By following the steps of Mr. Why, he would be able to find a better, unique answer to his problems.
In his case, Lui, known as the “King of Quarrying” concluded that his company only needed to focus on two things in order to stay in the quarrying business: “One was to lower costs and the other was to produce competitive products. Only producers who aim for low costs with good quality can survive. And a small company which is unable to control its costs will be walked all over. Thus they set their minds to push for the lowest costs among their competitors, and they worked very hard to achieve that.”
So how can one lower production costs? Lui’s solution was to focus on acquiring cutting-edge technology and machinery and to improve the effectiveness of production-to-sales processes. As a matter of fact, after years of experience in business, Lui realized that, in every industry, “one should not expect to succeed with a single constant formula. Business can only grow with new technology, new management and new business deals.”
“Observe the surroundings well and never be complacent.”
— Lui Che-woo
Embrace Change
"Innovation is the ability to see change as an opportunity, not a threat."
— Steve Jobs
Adaptability is crucial for any business aiming for long-term success, and Marriott International embraces change as a fundamental principle. As a matter of fact, as we have explained previously, being a hands-on manager is primordial in order to gain feedbacks from both our frontline employees and from customers. However, the company needs to act on these remarks in order to innovate and evolve over time.
Embracing change has never been a concern for Bill Marriott Jr.. In fact, a lot of changes in their hotels come from feedbacks received from their customers. For example, Bill Marriott Jr. mentions that “Today, electrical outlets are important... If we hadn't been open to our customers' suggestions... we might never have known how much this one simple change meant.”
This concept of “embrace change” is extremely important for a company like Marriott who is in the hospitality industry with many competitors. The company’s adaptability has been a significant factor in the company’s growth and resilience. Nonetheless, Marriott warns us that while it is important to evolve in order to meet with market demands, it is extremely important to stay true to the company’s core values.
“To grow successfully, you must stay true to who you are, even while working feverishly to change who you are.”
— Bill Marriott Jr.
This concept reminds me of what we have learned from Andy Grove. As the former CEO of Intel, Grove was known for his unrelenting focus on staying ahead of the competition and anticipating the next big shift in the technology landscape. At the heart of Grove's philosophy is the idea that healthy paranoia is an essential quality for business success. As he once said, "I believe in the value of paranoia. Business success contains the seeds of its own destruction." This notion may sound extreme, but Grove's logic is hard to refute. In fast-moving, hyper competitive markets, complacency is the main reason for the downfall for even the largest companies.
This risk comes from the fact that when companies are doing well, the leadership teams can become complacent as they fail to recognize the warning signs that the industry is slowly changing beneath their feet. Grove saw this dynamic play out time and again, as once-dominant players in the tech sector found their fortunes suddenly in free fall.
Grove illustrates this point by recounting the experiences of his own company, Intel, as it navigated a strategic inflection point in the computer industry, where there are often changes to the rules of the game. He observes that "sometimes these rules change—often in very significant ways. Yet there is no flashing sign that heralds these rule changes. They creep up on you as they crept up on us, without warning."
His solution was to encourage a guardian attitude among his management team, where vigilance against potential threats was the default mindset. He once said, "I believe that the prime responsibility of a manager is to guard constantly against other people's attacks and to inculcate this guardian attitude in the people under his or her management."
The lesson here is that business leaders cannot afford to be passive observers, waiting for the next crisis to emerge. Instead, they must be actively scanning the horizon, stress-testing their assumptions, and empowering their teams to voice concerns without fear of repercussion.
Beyond the Book
Read "The Eternal Pursuit of Unhappiness" by Farnam Street
Read "Andy Grove and the Value of Facing Reality" by Farnam Street
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