Four Seasons goes to Paris

Organizational Design

Nguyen Thi Kieu Khanh (Kiki)

Master class
Professor: Walter Mareovich
February, 2018
Table of Contents
Executive Summary...............................................................................................................................2
Introduction...........................................................................................................................................2
Discussion..............................................................................................................................................3
Corporate management....................................................................................................................3
The Four Seasons’ Adaptation to French culture...............................................................................6
Performance weakness...................................................................................................................10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................11

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Executive Summary
The Four Seasons Hotels & Resorts are one of top leading hotel operator of luxury hotels
worldwide. Moreover, they are well-known for high standard value service to their
customers and guests’ pleasant. In 2002, operating in over 24 countries and managing
53 properties, The Four Seasons Hotels & Resorts has been experiencing to adapt a wide
range of distinct cultures. Refreshingly different approaches to specific regions would
require suitable adaptations within the company culture and region culture. These
adaptations can be a classification of tangible features (laws, organizational structure,
etc.), service quality, and changes in human resource and management styles.

In this case, The “Four Seasons goes to Paris” is considered as a well renowned and
challenging example in organizational design, which I would like to emphasis on five
main parts: introduction of the company, corporate management, its adaptation to
French culture, performance weakness, and conclusion.

Introduction
Established in 1961 by the founder - Isadore (Issy) Sharp, the story of The Four Seasons
Hotels & Resorts has begun with its first hotel in downtown Toronto, Canada. This
Canadian-based company, for more than 50 years, has transformed from a motor hotel
into the international hospitality industry. Owning 112 properties in 46 countries
currently (updated in 2015), the founder’s vision was to create a chain of luxury hotels
that offered excellence in service and amenities. Additionally, Four Seasons has
redefined luxury for modern traveller in the process.

Since the first opening of Four Seasons in London, United Kingdom in the 1970s, this
hotel had achieved its success to bring a clear future direction and pioneered its
signature of services. Remarkably then, the company had found its niche: mid-size
hotels of “consistently exceptional service”, which has been maintaining to “maximize
the value” of guests’ time until now. Doing so, Four Seasons aims to be the world’s

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leading luxury hospitality company that “manages the finest hotels, resorts, and
residence clubs wherever we locate” with “a deeply instilled ethic of personal service”.

Within thirty years, Four Seasons had expanded into all Canada, North America, and
several destinations in Europe and Asia in success. As fifty years went past, this
company had grown in both size and reputation all over the globe. And entering its sixth
decade, Four Seasons has continued to maintain its global expansion to enhance its
leadership in luxury travel.

As a result, Four Seasons was ranked as one of 100 Best Companies to Work For in
FORTUNE Magazine for the twentieth consecutive year since 1998.

Interestingly, one of its most challenging situations of this company is entering Paris,
France analyzed in “Four Seasons goes to Paris” case study (Hallowel, 2002). This
company renovated the Hotel George V and renamed to Four Seasons Hotel George V
Paris in 1999, becomes its first French property. As a senior Four Seasons manager said:
“Europe is different from North America, and Paris is very different. I did not say
difficult. I said different”. This case presents how Four Seasons has approached to a new
national culture with strong differences in organizational culture; especially to French
culture, and adapted perfectly by some key elements, described in the following.

Discussion

Corporate management
During its well-known hospitality service more than 50 years, Four Seasons has chosen
its corporate mission statement based on the Golden Rule – to “treat others as you wish
they would treat you”, as its core value. From that, the managers and employees
presented the firm’s values through their practical behaviors to their guests,
shareholders, and colleagues.

Sharp emphasized that “The Golden Rule is the key to the success of the firm”, shaping a
strong relationship between the management, guests and employees. Based on the
Golden Rule, the management monitors the activities of the employees and the
functions to guarantee the prosperity of the firm, and increase long-term profits.

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Furthermore, “family” was referred as a strong adherence between corporate and field
managers, along with rules, traditions and customs, and tough love in Four Seasons.
And, the employees and managers were targeting to work for their firm, not for the
individual property, as their powerful “one-firm sentiment”. They can work
cooperatively together, and respecting contribution and importance of others so as to
satisfy the guests. Thus, people in Four Seasons are a key asset which can provide a
sense of dignity, pride and satisfaction in what they are doing.

Additionally, the top managers are comfortable in widely international areas. They are
“global citizens”, who can live and adapt to every different culture, language and
country. Thus, Four Seasons hotels are like cultural specialties that the managers desire
achieving. Importantly, the orientation of customer service enlarged into every
managerial level at Four Seasons hotels. For example, managers, sometimes, assisted
the staffs to clearing restaurant tables. It clearly identified the willingness and flexibility
to the service.

Hence, the Golden Rule is the foundation of the values and culture at Four Seasons
hotels and resorts, which spreading successfully to every city, country worldwide.
Moreover, the managers and associates at Four Seasons made enthusiastically practical
service culture, which differentiated Four Seasons from other firms.

Approaching to international growth

“Each hotel is tailor made” is to adapt to national environment and represent the culture
of its destination. “When you sit in the Four Seasons in Bali, you feel that you are in
Bali.” It demonstrated the diversity and singularity of this company. Even Four Seasons
hotels are original Canadian products; their intangible styles are definitely strong,
unique, and perfect for different countries.

In tangible products, Four Seasons hotels and resorts are the pioneer of service and facilities
in the hospitality industry, which became the first hotel including bathroom amenities (e.g.
shampoo, bathrobes, hairdryers and make-up mirrors) in their hotel rooms. Also, it is the first
firm providing 24-hour room service, overnight dry cleaning, and fitness centers. Thus, the
products in every Four Seasons’ rooms are convenient to the guests’ requests, from the
public spaces to the bathroom. More than that, Four Seasons’ properties were designed
to be suitable with the perceptions and differences in every culture. For instance, the

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restaurants are more important in hotels in Asia, so they enlarge more restaurants in
every property in Asia. Or, the bathrooms in Europe tended to be small while the
lobbies in Far East need to be large for guests to see and to be seen.
In addition, seven intangible Four Seasons’ “service culture standards” were
implemented to all associates around the globe at all times (SMILE, EYE, RECOGNITION,
VOICE, INFORMED, CLEAN, and EVERYONE) to shape the rules and exceptions in
international growth. In addition, the management will give exceptions to be familiar
with local flexibility and sense, forwarding culture standards. For instance, associates’
uniforms are differently changeable cloths in Bali or Chicago. To be added, they can
change their clothing uniform when being dirty, showing the respect and dignity of the
organization. Also, “if you can do something for a client that goes beyond a standard, do
it”, managers told the employees, as the desire of minimum expectations to the
customers. The associates at Four Seasons are inspiring and impressive with the
understandings of its cultural standards, which are not similar to other companies.

Opposed to its standards, Four Seasons used both external and internal auditors to
evaluate the performance of every property. Thus, it brought the clarification in
measurement programs, and contributing to the relationships between people and
organizational culture.

Inspiringly, an “intelligent, anticipatory, and enthusiastic service” was spreading to

every corner of Four Seasons hotels. The management focused on both intangible and
tangible elements in service quality. When the associates are distinctive, adaptable,
empathetic, and anticipate the needs of guests, the interaction between guests and
employees will be close-knitted, which built and maintained the customers’ trust.

Furthermore, Four Seasons enables to improve its service until meeting the satisfaction
of the guests. Take scrambled eggs and “oeuf brouillés” as an example, one couple
ordered an omelet and scrambled eggs. The man sent the omelet back and wanted
scrambled eggs. Then he gave it back, the second time, because of not his expectations.
It turned out that scrambled eggs and “oeuf brouillés” are different between America
and France. Thus, Four Seasons did not charge the couple for that, and adjusting to
deliver the service with spectacular patience and heart.

International structure of the organization

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The management of Four Seasons Hotels and Resorts implemented the firm’s regional
management structure to increase the highest service quality at every property. In each
property, a general manager will be responsible for supervising daily operations and
then reporting to one of the thirteen Regional Vice Presidents or one of the two Senior
Vice Presidents, Operations. As well as, general managers will have a supporting team
including a General Marketing Director, a Regional Human Resources Director, and an
Area Director of Finance.

The top management team of Four Seasons has its longevity, which has been working
almost for more than 25 years. They mostly work as full-time employees of Four
Seasons Hotels and Resorts, with partly managing regional matters. Their traits
specially include a respect for modesty and compassion, an international flair, and a “no
excuses” mentality to their peers. Thus, service orientation like a sensitive sense,
became a significant element of every manager at Four Seasons since several years of
experienced working. These created comfortable and close-knitted relationships
between the management team and the colleagues.

Additionally, the price of Four Seasons’ rooms is flexible in every city in the world, but
mostly this hospitality company focuses on the luxury and ranged from 300 to more
than 1,000 dollar per single room.

As a consequence, the management of Four Seasons aims to give the best high quality
service to the guests around the globe in both tangible and intangible products, suitable
with every cultural difference.

The Four Seasons’ Adaptation to French culture

Service landscape

Two well-known French art deco architects designed George V, one of six historical
hotels known as “Palaces” (large, historical, and luxurious) in the 1920s, locating in a
Paris’ most fashionable district. Due to the pride of French history, culture and
landmarks, Four Seasons tried to preserve original French architecture and physical
design while renovating and developing some parts of the location. “I would like guests
re-discovering the hotel to think that I had not changed a thing-and, at the same time, to
notice how much better they feel within its walls”, Rochon stated in the case study.

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Closed in two years, F.S George V renovated the facility to meet the needs of its
operation (e.g. art deco windows and balconies, reduced rooms, tapestries) while
keeping the meaningful and prideful symbols, signs and artifacts to reflect the
combination of luxury, innovative design and classic heritage. In addition, Le Calves
stated “Paris is a city of fashion and culture, artistic and innovative”, in the case study,
thus the design of lobby should be large to contain one thousand roses as spectacular
symbols of French and international culture.

French laws and regulations

Four Seasons’ management has built American life-safety standards in Paris;

meanwhile, it has been following local laws, business culture, and specialty of its
citizens, affecting design and workplace. Although French rules and laws are not
straightly different from other countries, they are restrictive, especially labor laws. The
management of Four Seasons decided to adapt French culture by implementing several
practical policies.

First, food and garbage have to be travelled in different corridors and elevators, to
ensure the hygiene in France. Second, the employees have a right to work near the light
(a window) for some specific hours per day. Thus, when designing the hotel, there
should have many windows as possible to follow the laws. Third, Four Seasons
committed to the French law of 35-hour work week, not similar to other hotels (up to
40 hours), targeting to a competitive attraction for the employees. Although the
managers did not understand the impact of the 35-work week, they had still
implemented to the French spirit, which each associate can work 214 days per year
with around 1,500 to 1,600 workable hours, comparing to approximately 2,050 hours in
the United States, and every 80 managers had to have two consecutive days off per
week. As a consequence, the labor laws explained for the increase of staff ratios in Paris,
as illustrated 2.5 employees-to-room ratios at George V whereas 1.6 in worldwide
average.

French law ruled that a comité d’entreprise (a staff committee) is a group of more than
50 employees in organizational establishment, which presented the decisions of
management affecting the employees (e.g. salaries, work hours). Therefore, Le Calvez at
Four Seasons George V hosted the monthly meeting of the committee, including union

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representatives. To adapt the culture, Le Calvez did anything he can to adjust to be
suitable with the company, even it is similar to other property with different title.

French management

Due to the differences in French culture, a general manager is required to embrace the
love and respect for others and enhancing social, cultural, and ethnic integration.
Therefore, Four Seasons decided to arrange Le Calvez to be general manager of Four
Seasons George V in Paris. At first, he hesitated to take this position because of his
sensation between labor and management in French culture. However, he had seen the
resulted great changes at The Pierre, which encouraged him to take this position. (This
kind of traits can be proved to be “seeing is believing” (seeing something works and
following the process) as French culture.) He possesses more than twenty-five years of
international hospitality’s experiences, but also French culture as his home country. He
is open-minded, visible, welcomed to all the employees.

Le Calvez usually encouraged the colleagues to call by their first name to each other, not
Monsieur/Madam with their last name as tradition. It would present a friendly, relaxed,
and direct relationship between the managers and employees. Then, to help him and his
team of Four Seasons George V in smooth opening, Four Seasons assigned a task force of
thirty five people as a common “culture carriers” to establish the norms, listen for the
problems, avoid rumors, and communicate effectively the right information. The task
force included both veteran Four Seasons managers and associates to get the property
up and running in a physical way. It is a strong symbol which supports adherence to the
whole firm, not one specific property; thus, the members could understand and be
inspired how Four Seasons does things. Another advantage of this task force reveals the
managers who will become general managers to do the process of hotel openings.

To prepare for the hotel reopening, Le Calvez invited the representatives of various
unions to lunch and then touring the whole hotel so that union representatives could
experience what was done and excited about the hotel. Even this approach of unions
were not familiar with French people, Young felt it was easier than in New York. The
reason is because of the French institutions with strict and predictable laws whereas
hot-tempered and self-centered American individuals in leadership.

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RecruitmentandSelection
To attract high-quality employees, F. S. George V’s managers decided to advertise the
recruitment with higher salaries than any others, which brings a lower turnover rate of
11% compared with the hospitality industry average of 27%.. Additionally, the
managers would interview potential employees four times, including the last interview
with General Manager. They look for the right attitude, and adaptation, suitably positive
personalities; then, they are dedicated to have intensive trainings for their staffs. To be
added, from the great perspectives of veteran employees, they started to inspire others
by encouraging them to apply for vacancies. Furthermore, the George V management
preferred the employees with prior Four Seasons and/or U.S experience considered as
their ambassadors to share great U.S experiences which French people did not know
about.

As a result, the oriented culture of the Four Season Hotel step by step for its associates
increases employee efficiency, and then increasing customer satisfaction and retention
that leads to higher sales.

Human capital

Le Calvez and his team applied an employee-of-the-month and employee-of-the-year

program. Although this program had not been done in France before, the management
did it successfully, which could recognize those who perform greatly and then being in
recognition and rewards. It is quite similar to the cultural differences between IKEA
Sweden and China. IKEA China applied to have “star co-worker” to reward best
employees and encourage co-workers to distribute their greatest performance and
increasing productivity while IKEA Sweden did not. Moreover, applying the annual
evaluation (unfamiliar with French people) was an open and beneficial purpose for
maintaining great employees and their productivity, which French employees could
adapt when being needed. Then, the whole team could celebrate achievements if highly
great property rankings. In addition, a “Plan d’Epargne d’Entreprise” was a combination
of tax-deferred savings account and 401(k) type retirement plan, applied for George V
associates. It is clarified as the employees could contribute up to 4 percent of their
salary (plus 2 percent from the hotel, based on profitability) to be their agreement of
retirement plan.

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To promote communication and problem solving at Four Seasons George V, the
management team implemented a monthly 30-employee group meeting. The general
manager met the employees, supervisors, and managers in three consecutive months to
discuss about the issues and addressing the solutions, and then submitting the report to
all the members of the group. Even though admitting the issues was not familiar with
French culture, these meetings were useful and positive as hope.

To remind the “plaisir du travail” – enjoying one’s work at Four Seasons, Le Calvez and
his team finally organized an open-door event, three times per year, inviting all the
employees and their families to spend their valuable time to experience the hotel in the
most comfortable way. Therefore, the employees could be proud of their work and
experiences at Four Seasons from the eyes of their family.

External communication with the press is quite sensitive, even Four Seasons hotels and
resorts own its official online press. The management team at George V decided to be
open and responsive to the press in France to inspire the great and successful key of its
organizational culture and high service standards.

Interestingly, a non-Four Seasons executive chef was hired at F.S. George V. Due to the
importance of food and décor in Paris, the world famous Parisian restaurant Taillevent
– Chef Philippe Legendre was hired to create the impressive possibilities and
excitement in cuisine.

And remarkably, a revolution step at Four Seasons in Paris, hiring women as concierges
and men in housekeeping is an equal opportunity and decision, seen by the managers.

Performance weakness
There are three critical points illustrating the obstacles in performance and service
quality (in the first audit, less than one year after reopening the George V), relating to
attitudes of employees, typical French culture. The employees were lack of empathy and
apologetic attitude; they are difficult to sell things to customers; and strong focus on
rules and policy oriented.

To maintain strong customer relationship management, both the managers and

employees must possess a sense of empathy to serve their customers effectively. It is
inevitable to some unpredictable events happening in service industry, such as

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overbooked rooms, high guests’ expectations to the amenities in the room, or the
postponed assistance of concierge or bellman. However, expressing empathy for any
situation, the interaction between guests and employees could last-long, as an example
of a Four Seasons employee brought the guest to the hospital. The golden rule is always
a guideline for treating and to be treated.

Furthermore, the employees must have a capability of selling, but first, observation. For
example, when a potential customer, who has never experienced any beverages, is
sitting at a bar, the employee should be the first person starting to approach this guest
in a polite and welcome manner. The guests at Four Seasons have high expectations
with luxury quality and products; thus, if the associates can offer the guests’ desire, the
increasing sales and profitability would come.

Last but not least, French people are quite policy oriented, which can damage the
service industry. When receiving customer complaints, the company should be careful
with every actions has been taken by the employees. Instead of using policy manual, the
staffs need to place themselves into the situations of the guests and calming down.
Happy employees are happy guests and vice versa, bringing the positive happiness to
the clients and the company will receive great things.

After all, meeting some obstacles of entering new and different culture is a usual
situation, which any organization had, especially approaching to Paris. However, Four
Seasons is exceptional of quick improvement and adaptation to avoid the losing number
of customers. Therefore, process analysis should be conducted frequently as well as
employees’ performance and service standards at Four Seasons George V.

Conclusion
The Four Seasons Hotels & Resorts have a strong and successful organizational
management and core values to adapt with French culture even they have still met
some difficulties. Since its opening, some organizational cultures were constant whereas
others were flexible, but the main idea of the Golden Rules always keeps in one’s mind.

Step by step, the consistency and discipline of the management resulted potentially into
the success of Four Seasons George V in Paris to approach effectively the core values of

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Four Seasons worldwide and cultural needs. Thus, any firm or organization could learn
several lessons from this famous case study.

References
Amonca58, (2012), CRM in the Tourism Industry – The case of Four Seasons Hotels

https://wearedevelopment.net/2012/03/14/crm-in-the-tourism-industry-the-case-of-
four-seasons-hotels/

Cassie Bruce, (2014), RUNNING HEAD: Four Seasons Cultural Adaptation Analysis 1,
Anderson University

https://www.academia.edu/9329393/RUNNING_HEAD_Four_Seasons_Cultural_Adapta
tion_Analysis_1

Four Seasons History, Four Seasons

https://www.fourseasons.com/about_four_seasons/four-seasons-history/

Four Seasons worldwide Directories

https://www.fourseasons.com/content/dam/fourseasons/web/pdfs/worldwide_direct
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Pham Ngoc Binh, Xue Hongyu (2008), Managing cultural differences in MNE: A case
study on IKEA in China and their staffs, Mä lardalen University

http://www.diva-portal.org/smash/get/diva2:539330/FULLTEXT01.pdf

Roger Hallowell, David Bowen, and Carin-Isabel Knoop (2002), Four Seasons goes to
Paris, Academy of Management Excutive, Vol. 16, No. 4

Sarah Tuite (2018), The story of Four Seasons, Press Four Seasons

https://press.fourseasons.com/news-releases/the-story-of-four-seasons/

Sarah Tuite (2017), TRAVELLERS SPEAK: FOUR SEASONS HOTELS AND RESORTS EARN
HIGH MARKS IN TRAVEL + LEISURE’S TOP 100 HOTELS IN THE WORLD LIST, EARNING
MORE PLACEMENTS THAN ANY OTHER HOTEL COMPANY, Four Seasons Press

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https://press.fourseasons.com/news-releases/2017/top-100-hotels-in-the-world/

UK Essays, (2015), Four Seasons Goes To Paris Case Study Tourism Essay

https://www.ukessays.com/essays/tourism/four-seasons-goes-to-paris-case-study-
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