Ritz Carlton Founder - A Masterclass On Customer Service | PBD #735

I came to conclusion I'm working for barbarians. No fish knives, no fish fork. And they live in a with a situation where human beings shouldn't live. My my father joined the Nazi party because he had always was wor. And my grandfather was a unique character. Said if our son died, he will die too. >> So living in that environment impacts your life in a big way as a kid. >> No. No doubt. >> I will never go to that Ritz Carlton in Fort Lauderdale ever again. You understand I'm cannot compromise that you understand I'm getting upset. >> I said there is no way this is horse standard >> and then he said and don't come to work tomorrow come here to create excellence. Now I didn't get that >> you were number one when you guys left. >> Oh sure >> they dropped from 1 to 26 and Capella's number one. Yeah, I I insisted wherever we are, we're number one. Period. And and I dealt with the general manager said, "Will you accept that?" >> What's your superpower? >> Relentless. Here's a promise I'll make you. By the time you're done watching this interview with the founder of Ritz Carlton, your life will change. I'm telling you right now, it's a big promise and I don't normally open up an interview saying this. This was one of my favorite interviews I've ever done in my life with an 87year-old man that was born in Nazi Germany and 39. His father was in the military. His father was a Nazi. His mother hated the Nazis. And all he talked about was love and respect. and how this boy from this city in Germany grows up, goes into the hospitality business, eventually starts Ritz Carlton later on, the only business ever to get two awards from the government for the best service in the world. That what came with that honor was the fact that you had to let any company come to your company to learn customer service. And guess one of the guys that showed up, Steve Jobs showed up and said, "How can we make Apple's customer service better in the early 90s, the meetings he had, the people he served over the years, the philosophies?" Yeah. I asked him a question. I said, "Tell me about the managers you managed." He said, "I had 65 managers." I said, "Of the 65 managers, how many were leaders? How many were managers?" Five leaders, five uh 60 were managers. I said, "Give me the best one that you had. What did they do?" He gave three principles of what this guy did. breaking it down. Here's what made this guy better executive. Here's what made him a better leader. How do you deal with confrontation? How do you deal with issues? The answer is going to shock you. And for us, we've had Ritz come here and train us in this exact room with all of our executives. And then I shared an experience we had with a local Ritz Carlton in Fort Lauderdale. And I asked him, I said, "So, how has Ritz customer service been since you left? I think in early 2020." and his answer. He did not want to give the answer, but he eventually gave the answer and it was a shocking answer of what happens after the founder of Ritz left and what happened to their customer service. At the time, they were number one and then what he did later on with the company called Capella. And then while we're sitting here, he's talking about an email he got from a previous friend employee that went to Ritz Carlton. He was in pain. He got emotional talking about the fact that those standards are no longer there at Ritz. Again, I can go on and on. Married to his wife for I think almost 50 years, 47 years, raised four kids, broke down principles, values on personal life, all of that. I I can't go on with a ton of stories, but I'll wrap it up with this one quote that he said from early one of his mentors, which you have to see when he tells the story to you. Please promise me you won't be a chair. Please promise me you won't be a chair. the amount of money he's made. He's met people from Onases back in the days. Remember this man has been around for 87 years to many of the recent presidents, all the presidents that we've had. And at 17 and a half years old, his first manager told him, "Promise me you won't be a chair." Meaning, one day when he becomes successful, you won't be somebody that just sits out there telling people what to do. And he kept that promise. Your life is about to change by the time you're done watching this interview with the one and only founder of Ritz, H Schultz. Enjoy this interview. >> I know this life for me. >> Adam, what's your point? >> The future looks bright. >> My handshake is better than anything I ever sign. It's right here. >> You are one of my son's right. I think I've never said this before. >> Decision. That's a simple decision to make. >> I I agree with you. And by the way, horse, you need to know this. Like, I've been following your work for many years. Uh we read the book. We see the work that you've done over the years. We brought in October of uh 2024 a Ritz trainer to teach on standards of excellence in this room. We took all our executive, all our managers for a full day. She did a great job on the training, on what you guys stand for, questions to ask. And you know, I've been a customer of yours for decades, going to Ritz Carlton, all over the world. >> And to sit with the guy that came up with the ideas, to talk to, it's a pleasure. It's great having you on the podcast. >> Great to be with you. >> Yes. >> And I I in turn, I admire what you're doing. >> Well, thank you. >> Truly do. >> Thank you. Thank you. So, let's get right into it. When I'm looking at the as I'm going through the story, I'm like, wait a minute. >> He was born in 1939 in Stoutgar, Germany. >> Wasn't Stoutgart, but was German >> outside of Stuttgart in the wine area. you know where wine uh >> and and apparently it's right next to is a Luxembourg in France on that area where it's like perfect market to create wine. So >> to go from there to where you are today, I want to first go into the story how everything got started. When you were born, what was Germany going through? >> Start of the war, beginning of the war, 39. Uh in fact, my father was drafted late 39. Uh and and was came back in between but left permanently, if you will, in 41. I got to know him. I got to meet him the next time when I was seven. So you you don't you meet your father for first time about seven years old. >> Consciously met him. I mean I get a baby. Yeah. Yeah. Oh no. In fact in fact I was playing with the with another kid in the mud heap somewhere when in a village. I live in a village and somebody came running. Go home. Your dad came home. >> Go home. Your dad came home. >> So I run down the street. Go home. Was couple hundred yards. Run there. And there was a bunches of people assembled already. Every every neighbor, everybody in town. That was the news when the guy came back from prison camp, you know, and there was and he just came back and I went through the mass. I knew it was him. This is a guy with a tedd uniform and everybody else wasn't. So I got in and I looked at him and and I said that and then he knew who I was, you know. >> What was that reaction? >> Oh well shock and a moment and then people crying and so on. That is what you remember the extremes you remember in the moment. >> Do you remember that day till today? Oh yeah, sure. Yeah. Yeah. Yeah. >> It's pretty wild. >> No kidding. Yeah. >> I mean, I was born in Iran in 78. So when the revolution happened and we left in '89, >> so living in that environment impacts your life in a big way as a kid. >> No doubt. >> What did it do to you? Well, uh it it it I don't exactly understand uh because I was there and with 11 years old and somehow that must have all have an impact with 11 years I went to my parents and said I want to go to work. I want to work in a hotel >> at 11 years old. >> Yeah. And I never there was no hotel in the village. Never been in a hotel. I' had never been in a restaurant. >> So how do you know this? Are you watching a movie? Are you reading books? Everybody is wondering I must have read something. Exactly. My parent my mother never forgave me because gave for never forgave herself because she then inquired how we going to do that when I kept on begging and begging and crying and and so somebody said well you should start in a very good hotel. So they look what's the best hotel. Unfortunately it was over 100 kilometers away. So at 14 I actually left lived in a dorm room in that hotel and and all that was an impact of the environment where that came from and and then we sat down often with my parents and tried to analyze it. There was no real answer. >> No movie, no book, no person, no teacher. >> Times >> I know what I'm trying to find out. But how do you because uh I read somewhere as well that you said as early as 4 years old, you knew you wanted to be in the hotel business. >> No, no, it was 11. >> 11 years old. Okay. Yeah. So when I read this, Rob, where was it we read that said as early as four years old? I said four years old for him to know at 4 years old. How does that happen? No. No. >> What What was it like? Maybe, you know, because today when we read about it, 39, Germany goes to war uh in September. I think you're born April 25th. So 5 months. >> January 10th. >> January 10th. Okay. So you're born January 10th. Yeah. >> Okay. So, January online says April 25th, by the way. And I know you're pretty private with your with your uh >> So, January 10th, you're born. Few months later, the country goes to war. >> What is the conditions like where you're living? I know, of course, you don't remember that that age, but >> Yes. Yes, you do. Because there was some so such extremes. Pretty soon we we went to sleep in the cellar. uh we broke the cellar wall in so in case the house would collapse we could go into the next neighbor and so on so on they were all connected so and my my mother my my father joined the Nazi party because he had to was working my mother was a major negative and let let me give you a story that is hard to believe my father we we didn't hear from him my my parents didn't hear from him but my grandfather who was hated Nazis. Every morning came to my house. He lived in a different house at 7:00 a.m. took the axe that was there from the wood shopping plat and stayed behind the door and looked through the slot in the door, old wooden door because the chief Nazi went to work that morning. When he went to work, he told stopped in the families where the son had fallen and informed them. And my grandfather was a unique character. Said if our son died, he will die too. When he comes in here to report, he's going to die. So you think you don't know that as a kid Opra is coming to take the action. That was the normal daily routine. >> So you you can't help but remember those things, you know. So, so or or my or when when there was the message that Hitler had been killed for a moment in the radio. My mother was in a grocery store buying grocery when it came the furer >> Mhm. has been killed. For a moment that was out and of course that changed and a few minutes later and my mother said got sadd thank god it's f it's it's time she was arrested the next day >> stop it >> just for a day because her uncle was a Nazi so that's what >> oh my god >> that's what life was there was nothing but what was there at the same time everything was still continue still had something to eat there still was kindergarten Even though when you had to write walked into kindergarten, you had to greet the Hitler at the the painting of Hitler, but it was all functioning somewhat. It's right after the war when nothing was functioning anymore and there was a total breakdown because there was no control. There was no nothing there. The the interesting thing at the time, the allies decided nobody who was a Nazi could work in a leadership role. Well, everybody who was in leadership role if you were running a water fun was you had to be a Nazi. You had to be a Nazi otherwise you you you so who do you put into this roles now? It was pattern in fact who said no we are going not going to do that. We have to put the people back to understand the job. I mean that that's how there was a total breakdown. There was no school. There was no transportation. There was nothing after the war. Right after the war. So that was and of course those created such extreme moments that you do remember. No doubt. >> Yeah. You see the inflation there was some reports I saw that the price of bread could double every two hours, every four hours. Some weird stories that you would you would read about. >> Uh uh. So do you remember the day uh uh it was announced that Hitler died? No, I don't remember. No, I I only knew my my mother was in trouble. >> She got arrested and this was even the the right one. This is a day that she thought he died that he he didn't die >> for the moment for the moment was announced. Uh Stber who tried to kill him thought he was dead. He announced and was open. That's how how everybody was exposed because he they got a message he died. Consequently, everybody that was part of the plot, 20,000 exposed themselves, took over in various towns and were killed afterwards. That's how they knew they were all all involved. That huge plot. Yeah. >> 20,000. >> Yeah. >> How do you Because when I'm seeing you speak or I watch your interviews or I sit down with you right now or you're coming up to me, read this book, I'm going to help you change your life. You're a very positive figure, right? Your intensity, your energy. You've been married for many years. You're a man of faith. You know, you speak in a very eloquent way. >> Even at that moment, were you staying positive? Was it your mom that helped you be positive? >> My mom. My mom. >> How would your mom make you positive? >> Very positive about life, about everything >> in in Germany at that time. >> In Germany at the time for for example, also my dad whom we didn't hear from for over a year because his group was behind the line in behind the lines in Russia. So you didn't hear anything for well over a year and we didn't know if he was alive or dead. >> He was alive in our house. >> My mother said, "I'm Oh, that's a good job. I would tell dad or don't do that. Your dad won't like that." So he was constantly alive there and and and she kept him in the house and it was nearly like he was there, you know. >> Wow. >> So that was and and it's that's how mothers are. That's a mother. I mean um I told you when I finally she took me to this job which was far away from home. She knew I was very homesick but I wanted to be there and but she wrote me a letter every day day. If I didn't have one today I had two tomorrow help me through. >> What an amazing mother. What a great story. >> It speaks about mothers you know. >> Unbelievable. >> Yeah. >> So she was the reason why you became positive. So you so you leave at 14. By the way, how many kids were you guys? How big was the family? >> I had a brother that was eight years older. He had left already. >> So he was in the military. >> No, no, he was he was he was in studying and working. >> He started studying and working. >> So you were by yourself living with mom before you left at 14 years old. >> That's correct. Yeah. >> Okay. And >> but my father was there in the meantime. And when I was 14, he came back when I was seven. >> So from 7 to 14, your father was there. >> Correct. What what influence did your father have on you? >> Well, uh very very high demand person. Uh work hard, do everything right, everything with values. Uh I I I read the Bournehova book where Maxis says tells about Bournehovs which was a very rich family sitting around a table and the the attitude was don't talk unless you have something important to say. This was true. a very rich family. That was also true in a very poor family in our house. Sit down, eat, do everything right. >> Wow. Lots of >> Don't do it unless it's done right. And >> is that a German thing or is that a scholy thing? >> Believe me, it was in our house. How German it is. I don't know. >> Got it. Yeah. Bonhaofer is an amazing story. My pastor Dudley Rutherford bought me a book. >> Yeah. >> Uh 20 years ago, 18 years ago to read on Bonhaer. Incredible story on what he went through. So, but but going back to it. So dad was order, structure, system. Mom was attitude, positivity. Everything's going to work itself. >> Love from mom. >> Oh, totally. >> How did she show it? >> By telling, by hugging, by holding, by by saying by by saying I love you. There was I don't think I was there was a day where I wasn't told 10 times that she loves me. I mean that and and that of course plays a role too. I I can see that that's how I am today with my wife or with my children, you know. >> Same way. >> Oh, yeah. Very much so. >> Are you more like your dad or your mom? >> My mom. >> More like your mom. >> My mom. Yeah. But but in my intensity of doing things, I'm I'm a dad. >> You're dad. >> Yeah. >> At 14 when you left to go to the apprentice apprenticehip. And how long are you away? Are you coming back home? Are you seeing the family? What is that process? >> Every 3, four months. >> Every three or four months, you're seeing them. >> Yeah. >> And this place you went to, where was it? What did they teach you? >> Oh, well, it was it my mother took me there and the first thing I I meet is the general manager of the hotel. Now, in Germany, the general manager was a god. Understand? And he told me he spoke to us for two minutes and the only message was now you're here to study and learn how to become a servants to very important ladies and gentlemen our guest that's what I wanted that's why I wanted that was my dream to live in beautiful surrounding and and and serve wonderful people known people but the next person was the head waiter of the hotel the metro the head waiter whom I actually would work four and he changed my life at two sentences totally. Now mind you, I was 14. I didn't know it in the moment, but he lifts those two sentences and it was overwhelming. He he, you know, when you're 14, you're being formed still. >> Sure. >> And he said at the time, the first thing he said, "Now, young man, tomorrow show up at 700 a.m. If I meant 1 minute after 7, I would tell you so." Now it translated and I left after I could see when we say something we do it correctly and we mean it and we we do everything right here. And then he said and don't come to work tomorrow. Come here to create excellence. Now I didn't get that. That went right over my head. I said wait a minute is do I have to do something else than I thought? I thought I would have to wash dishes, clean floors and so on. Yes, I did. But >> that comes with it. Got it. So what was the sentence? Come here to work with excellence. >> Come here. Don't come to work. Come here to create excellence. >> To create excellence. >> And how long did he stay as your mentor? How many years? >> Three and a half years. >> Three and a half years you worked under it. >> Yeah. And he and he formed my life and everyone when when he when he said create excellence, he he meant don't come here to fulfill a function. come here for a high intent. Your function and and and I'm sell about that today. I wouldn't hire people to fulfill a function. I hire them for purpose, >> for high intent. >> He he for example, he made it very clear our function may be to bring and serve food and beverage. Our intent is to instill well-being in people. So that for my life I don't do anything without purpose and and I I think you're not in fact I I make it a very very clear and I use the same phrase and he did the chairs on which you sit are fulfilling a function you are a human being you don't fulfill a function without purpose >> and and I find it even immoral that we as companies hire people to fulfill a function rather than to join us in our vision and our purpose. >> On a vision, a mission, a purpose, something bigger than us. >> Purpose. That's right. >> So you you picked that up from him. Did you spend a lot of time with that general manager or not that much? You were more spending time. The general manager was the guy. >> Once in a while he passed by and said good morning. >> How serious was he? Was he a was was that a very common thing in Germany? Super serious, super disciplined. Were those the qualities? >> Absolutely. >> I lived in Germany for a year and a half. >> Absolutely. in heirlangan. I was an heirlungan uh uh uh right outside of Nuremberg. >> Yeah. >> And uh it was in 1989 to 1990 and I went to school for two years. >> You know, it was a very, you know, militaryike, you know, it was a very, you know, be ready for it. >> Sure. >> It was a different intensity you got from them. >> Absolutely. >> Yeah. Even right now where our son plays soccer and we have an option to sending two different places to Germany or to Spain. All the coaches are sending Germany as more discipline. Spain, he'll learn the game, but I'll have fun. But Germany is very much you better get your act together. Yes. So, what happens after that? So, what happens? You're there for three and a half years. What do you do next? >> And and next I it was pretty common and and also recommended again from that header to work seasons in various hotels in Europe. So, I went out and worked in in Burn and the B bel create one of the great hotels of the world in Lan in the Borash Palace. I worked whole America line for for eight months. I worked in Paris. I stayed there two and a half years in the Plaza at which was one of the great hotels in the world. Worked worked in the Seavoy in London. And in the Savoy as I worked as a waiter, a guest said, "You're a great Vera. Do you want to come to America?" And I said, "Sure." Now, if he would have said Zimbabwe, I would have said, "Sure, too." >> You just wanted to leave. I want an opportunity. I was young. >> Yeah. How old were you at that time? >> Capture the world. And at that time I was 23. >> 23. Okay. >> Capture the world. Be and see the world. Capture the world. Learn learn new things. So he said all right give me your name. I will send you pap. We are opening a new hotel in Houston. And once you get the pap go to the to the embassy. And that's what I did. and in the embassy. So they at that time immigrant at that time me >> I went through a physical care for physical I went to an oral test I went to a written test. Yes. And in the evening they gave me some job. >> Yes. >> And the evening they gave me some papers and asked me when will you go to America? And I said when I get my papers and he said you have them in your hand. And then I then I took the ship on which I had worked as a passenger. >> Stop it. >> Yeah. >> So you go with the ship to the states. >> Yeah. Oh, at the time there were no there were no planes at the time, >> right? Makes sense. >> Basically >> makes sense. I keep forgetting you're born in 39. Yeah. >> Times are different when you were born in 39. You know, it's a it's a very different world. When was the first time I remember you said uh when you first started working at the hotel, you're like, I wanted to work in luxury. I'm going to meet people. I'm going to meet these interesting people, powerful people. >> Who was the first person you met that was a celebrity that you recognized saying, "Oh my god, >> a very famous Sepan who was a very famous soccer player before that." >> Sepan. >> Yeah. That was more important than oh I met I met all the politicians of the of the time if that was Aden or so at the time everybody was there. That was the hotel where you were was that bomb and and and the general manager was right. The guests sitting there all of them very important that was the place to be and it was at the same time a spa hotel and so on. So when I met Sep was meeting a great family soccer player was more important than meeting all the other >> of course politicians the leaders. Sure. >> I later, for example, I worked in the late late 50s 60 in Paris in a there you you name it. If it was Sarah at the time or or Chris Kelly or Gary Cooper, I served them all. >> Grace Kelly. >> Grace Kelly. Absolutely. Do >> you ever serve Onasis? >> Oh yeah, sure. Serve them all. The Beum and so on. that those were the guests. >> What did you notice? Was there a pattern? What you noticed with this life of the rich and famous? What what patterns did you notice with that? >> Well, the pattern was that that we who served them didn't really exist. >> Got it. Was that the mindset or was that the reality? >> That was the reality because they were so used to they were just we were just there. But that was okay with me. I just I had no problem with that. >> Interesting. Got it. Because at that time you're not yet horse chultzy. You're just >> a young man working there. >> I just and I wanted to and I knew that when I was dreaming about it and that I was take care of very important people and one of the other recognizes you and I I had an experience when I worked the first day I worked actually in the restaurant where I started. >> Mhm. There were a couple sitting there and they saw of course my beginning that my knees were shaking and so on and the gentleman told me come here you're doing a great job and gave me what five mark which was a huge amount of tip at the time >> this is what year >> that was 1954 >> okay >> that was a huge amount of money and so but the encouragement of that moment what matter was traumatic >> unbelievable But just to see that somebody is encouraging you even though you think you're nervous. Was he somebody or was he just a businessman? >> I had no idea. >> You had no idea who it was. It wasn't a famous person. >> No. No. >> Was there any famous person that was super complimentary that left an impression on you when you were younger? Who was the kindest to you? >> Well, well, probably because we're tall. So, I'm not quite sure. There was uh Conrad Ardinawa who was a guest several times there with always with others and of course security around them but he looked at you and said good morning he looked at you >> got it >> and he didn't just pass you by >> you existed >> you ex you you actually felt that you existed >> interesting >> and I found that very encouraging too and and and so we all liked him for this very nothing that he looked at and that recognized us. But the a huge change in that moment that particular job too again with that matraee I typical German you you learn this work once a week you go to a school of your of your trade in this case hotel school where all the kids from the area came and after two years there the teacher asked us to write an essay what we now think about our business going back to work that night. I was cleaning a table and I watched a maj that m approaching a very important table. Well, they were all important and in that moment I realized I had seen it before but I never realized it. The guest on the table were proud that he came to them. Now he was a very tall man. They worked in tales and they worked fantastic. >> Mhm. >> And >> and I and I thought wait a minute this is a reversal. Why are they we are here we the servants >> and I thought about that I had to write an essay that night for that school and I thought about I wrote the essay and it for the first time my life I come came to the realization which kind of formed my life too. The reason those guests were proud that he came to them because he had defined himself as a firstass gentleman. And I realized, wait a second, I can define myself even if I was a dishwasher all my life. I don't have to be a bum. I still can define myself as a first class gentleman. >> How does one do that? by respecting others, by being honorable, by not uh going against authority, if you will, by coming to work 5 minutes early and say maybe 5 minutes late later and say I respect what I'm doing here by tell by saying good morning to your boss and not ignore not hate him but be thankful that he exists because otherwise I wouldn't have a job. So I still can define myself and and do everything I do a little better than anybody else. >> As simple as it is. How >> simple is that? >> Don't complain about business. It's it's ludicrous. How I when I started Ritz Carlton, I only took the job. Remember I had a great job. I had golden handcuff. I had everything. In fact, I people may heard it that worked with me. I was a young star in that company and hired at the time in charge of 65 hotels in the United States, food bearish operations and so on. And I left for a dream for a purpose to create the finest hotel company in the world because they told me you can do what you want basically operationally and I went there for that purpose. But I had to ask myself, is that purpose good for all concerned? First of all, is it good for the owners? Because believe it or not, friends, you won't have a job without some owner. That was clear to me. I number two, is it good for every employee? It wouldn't be good for the employee. It wouldn't be good for the owner because we wouldn't have a job. >> Mhm. >> Is it good for every customer? Is it good for society as a whole? And I question myself would God approve? Once I have this can answer that clearly as yes, I cannot compromise it anymore and now I have defined myself as the person who can do it. That's it. It is not a matter of just having a vision. That vision has to be of value to all concerned. >> That makes sense. When you got that call at 23 to go to Houston, was that Hilton or was that Hyatt? >> That was Hotel Corporation of America which became Sonesta later. >> Okay. >> So I went to Houston. Frankly, I didn't stay alone. Very short there because I was totally new and when you have cultural beliefs, they're sometimes very stupid. And um the first day there first of all I lived in Hawaii and no air condition and I got got there late June. I've never experienced heat like that. And >> in Houston and next door I worked and the first day I worked as a waiter actually I was there a few days and first day I worked as a waiter I had an order of fish order and I looked where are the fish knives and the fish forks. I had worked in the finest hotels in the world my new and and they said what is that and I came to a conclusion I'm working for barbarians no fish knives no fish fork cannot be and I live and they live in a with a situation where human beings shouldn't live with this heat I thought I didn't know there was air condition >> and Houston is pretty hot if you're coming from Europe >> you better believe it >> yes my wife's from Houston, it's very hot. >> So, I called a friend of mine who worked in San Francisco in a as a in a French restaurant and I said, "I'm gone back. This this is this is their barbarians. They serve fish without how ridiculous can you be. That shows you how silly we sometimes have beliefs. Our beliefs that we set because the the culture is it is sometimes very silly. We have to look into it." So I left there, took the bus to to San Francisco, worked in San Francisco, started in a restaurant, but then I worked back in the hotel because I wanted hotels and worked for Hilton and uh after afterwards joined Hayatt. And >> how long were you with Hilton? >> With H with Hilton, I was not long there, but then I went to the club and back to Hilton. I was with Hilton for nearly four years. >> Four years. >> Yeah. What did you learn at Hilton that you took on with your career? >> Well, process of manage of of what you do or the organization uh organ because I worked for a while in catering selling how you how you organized to sell and so on. So I I learned but not uh traditional service and because we have kind of all forgotten what is table etiquette and so on. I learned that when I was a kid believe me that med everything had to be 100% correct but in in Hilton it was working and systems. I realized that every every effort has to have a process. Started learning that and then I joined Hayatt. >> Is Hayyatt where you became where you made a name for yourself? >> Yeah. Yeah. >> Because Hiatt is Hyatt where you wrote your first book or was it at Hilton? No, I no I I I read that after basically after I retired after and the book was written I became quite good friend with Steven Cave and Stephen was urging me to write a book about what we had accomplished with Ritz Carlton. >> So this is post Hyatt. >> Yes. >> This is at Ritz when you met Steven CVY and he said write a book. >> Yeah. >> Got it. Okay. And he he told me and I didn't do it and he kept on telling me and then one day I was driving home and he called me and I answer is Stephen. That's how he talked. You I'm disappointed. So disappointed in you. >> He's telling you this. >> Yeah. I said why Stephen? You have still not written your you own people. You owned people to write your book. promise me your will and I I promise you a few months later he died and that's when he died I was so and he always said I want to be the one who writes you forward >> and he died and I said Stephen I write a book for you now. >> Wow s well I mean he wrote a book that sold I don't know how many copies >> changed me. >> Oh yeah >> impacted me. >> Yeah lifech changing. >> Oh no question. >> Seven habits and then he wrote eight habit right? He wrote a book called eight habits family habit. >> Yeah. one of a kind. He was very unique. My uh >> unique >> very unique. So, okay. So, walk me through when you're at Hayyatt, you're making a name for yourself. >> Ritz comes and recruits you and you take your opportunities to risk. What happened there? >> First and I would like to say that because I would like to impact young people and in the conversation such when you come to my age, you want to impact. >> Sure. Yeah. >> When I worked for Hyatt, I was food and beverage director. That means I was in charge of the food and beverage operation of the hotel in Chicago. A year and a half later, I got a call from Mr. Front who was the president of Hired at the time and said, "Host sit down. We have something wonderful for you. You have done a great job with your European flare and all those things. We have what is maybe the best hotel in the company and you're going to be general manager." This is a moment, a dream moment, the impossible moment, the moment that you will never accomplish, but dream from. And here he said, "You are the general manager of the finest hotel we have." And I said, "I won't take it." And he said, "Are you not leaving the company?" I said, "No, I'm not leaving the company because I want to be rooms manager first." I never was rooms manager. >> Stop it. >> Yeah. And he said, "We're giving you rooms manager." And I said, "Yes, but I cannot be the best general manager in the company unless I have been rooms manager." >> Wow. What a message. >> And he said, "I I I'm coming." He He was in San Francisco. I'm coming to Chicago and talk to you. You're leaving the company. I said, "No." He came and said, "No, I want to be rooms manager." He said, "We have the finest hotel for you." I said, "Make me rooms manager. Give me the worst hotel." A year later, he called me. He made me rooms manager. A year later, he called me and said, "Remember what you said?" "Yeah, I want to be rooms manager." He said, "No, no, you said you want to have the worst hotel." We got it. And I got Pittsburgh, which was a dump. >> A real dump. >> What year is this? >> That is 196 1974. >> Okay. So I I moved to Pittsburgh and two and a half years later I was promoted to a larger hotel in Detroit and a year later I was promoted to regional vice president over 10 hotels and two years later I was promoted to corporate vice president and to Chicago and that wasn't good because when you're corporate vice president you're one of a bunch of bumps. They're all vice presidents. if you're regional, you're the king and you're regent, you know, but but still >> drop bombs. >> Still it was a promotion and so I moved to Chicago at that time and then I got that call after I was there for nearly 3 years >> to be >> to call that is a job. We what they said we we are building two hotels a holiday in and but we cannot come to agreement. We want somebody recommended that we create our own brand >> and you were recommended to run that brand. >> Who recommended you? >> Uh somebody I had that had worked a vice president used to be had worked in in Hayatt >> at Hyatt. >> Yeah. >> If you would have stayed with Hyatt, who would you have become? >> Probably CEO. >> You would have become the CEO of the company. If you would have stayed with Hayatt, >> that was the trajectory. Everybody else trajectory. >> Okay. It was obvious. Oh yeah. Oh yeah. >> Okay. So why take this position this opportunity that comes along? >> Yeah. Because at one word they said I said said when I asked them what would you do with your hotels and they said operation that would be up to you and I started dreaming and I saw a purpose and it started to control me and and and I said to my wife I'm I I will make this the best hotel company in the world. I'm if I go if they let me really operation do what I want to do. I I saw because the leaders mind you there were individual hotels that were different but the leaders of company leaders in hotel business was hired Hilton International Western and so on intercontinental and they were basically all doing the same thing and I thought I wouldn't compete with them. I just would go over them and pull the best out of them and mix a little bit more. do not get get away from the relaxed service element of America, but put a little bit more elegance and customer attention into it. And it it seemed to me when I listen to other companies, not not hotel companies, they there seems to be a lack of understanding that it's all about human beings. There are two groups of human beings when you're in business. The one group is your customer, the other group is your employees. >> So how do you and and both groups have emotion, thoughts, wishes, dreams, >> yet they're not taken into account by those that run companies. I have to take in account. I have to know what is my customers expectation from my product. What would they expect from me? And then I have to know as a good manager I have to create processes, system and controls. So I deliver the expectation of the customer hopefully superior to my competition. >> But it only can be superior if I'm also a leader not just a manager and lead my people to want to do that. This can only be done if my people are working for the same purpose. There's purpose. And I I still believe I said that again. It's not a job. That's the biggest gift a company can give you. The biggest thing a company can give you is purpose. Purpose and belonging. >> You felt you didn't have that at Hyatt. >> I I felt that wasn't managed well. We still just hired people and then sometime decided that employee is no good. Wait a minute. If that employee is no good, why did I hire him? >> It's leadership. Either I selected the right employee or I oriented wrong or I trained wrong or I have the wrong work environment. Mhm. >> That so it's not the employee, it's me. And that acceptance wasn't was maybe there in some people but it wasn't organized. And I knew if I organize my selection, my orientation, my training and my sustaining the knowledge and create a right work envirment, I could beat anybody. I believe I still believe that. I I sorry anybody everybody thinks I'm very arrogant now. I don't I think I could take any company in the world make it the best company in the world. >> You still believe that today? >> Yes. Absolutely. >> Based on what premise? >> Based on the premise that I would offer purpose that I would have be very careful in selecting employees and not just hire people. Come come on people are not se they're hired and I would orient them to the job. I opened every single Ritz Garden hotel and every Capella hotel myself. I didn't go there to drink champagne. Well, I did a little bit too, but I went there to orient the employees as to who we are and welcome them and roleplay to them how we deal with customers and train them. So, I was connected to the So, I I made sure. But what did I train? I trend what I knew the customer wanted, not what I want. Not what I want. Come on. I have been on a board with and many boards and most CEOs or nearly all full of egos, full of emotion, full of unsecurities like we are as human beings, but has no respect that the employees and and the customer has the same thing. What does a customer really want from you? What do they really want? I spoke to Classic Hotels of America not long ago and before me was a speaker who said everything is new. Forget everything. Everything is technology technology. Everything is new. Every 20 times forget all you new. If you don't if you're not in technology today, you are lost. I was the next speaker and I said nothing is new. Because you see 5,000 years ago, human beings want to be respected. And this was true this morning and a minute ago, tomorrow, and in 5,000 years from now. And if my technology helps you, my customer, to tell you that I respect you >> and at the same time care for you and do my best for you. >> That's what it's all about. It's caring. And you guess what? There are studies and American consumer study that's not very old where the consu 80% of consumers says I deal with you if you care for me even if I could buy the same product next door for less. So on the end an organizations the respect for an organization is how I care for people and that because that creates trust. People talk about >> loyal customers. Well, what is a loyal customer? A loyal customer is somebody who trusts you. They're not trusting you because of the product. They're trusting you because how you treated them, that you respected them >> and and that is not seems to be not understood. People work on the product and they do their best, they work hard, but I have to work and making sure that the my customer knows I respect them. So, you know, when you think about three things, product, service, price, in your eyes, in order, what would you put first? >> Product, service, price. >> Service. >> Service first. What's second? >> Product. >> Product. No price is last. Cuz if you can get the first two, they'll pay anything for it. >> If I get the first, I get more. Listen, Good Housekeeping was a magazine that developed value or product. They voted us Ritz Car in the early years as best value. We were the most expensive but we we were the best value. >> Wow. >> You know, >> wow. >> That's the point. That's what I have. And at the best value look in in in our first hotel there in in I never forget it because it even shocked me. We put the chandelier up in our as we were finishing it up in in the in the elevator foyer. This chandelier went up and and I realized there's an $28,000 chandelier hanging there. No guest ever commented on this darn chandelier. Nor did I do on the $200,000 uh oriental rock, nor on all the marble. We bought whole mountains in Italy. Nobody commented, but they commented how we respected them, how we treated them, how we were friendly, how we responded, that we cared. >> So, could you have gotten away with a $800 rug and a $600 chandelier? You think you could have gotten away with it? >> Yeah. Yeah. Look, look at look at that was lucky. >> I see your Capella Hotel, your Capella hotels that you build, you know, the >> It's not chand. Oh, yeah. It's still marble. >> It's beautiful. Yeah. >> Oh, absolutely. Oh, absolutely. But but the key thing that we did Capella only 100 rooms so I can individualize service. I couldn't individualize service in a 600 room carton because I had 450 check-ins today 500 checkout but in a 100 room capella with only individual and not conventions. I can call you before you come and say you're coming to Singapore. What can I do for you? It's all about you. As long as it's more legal and ethical, I'll do it. There's no check-in time and checkout time. We will have a room for you when you arrive. You see, it works. We figured out how that works. >> I saw you explained somewhere where you said at Ritz customer would be unhappy if check-in took more than four minutes. Right. At Capella, you brought it down to 20 seconds. >> Yes. In fact, like that's the change of the human being. We knew after four minutes they will get angry. Today it's 20 seconds. >> Oh my >> the timeliness we better know that as businesses timeliness expectations have become dramatic. >> True >> response including responses to emails or so on and it is we better know that there are two things that are greatly different and that is timeliness and individualization. The millennials say do it my way. Well, there you are again. What business has met ever met a study? What a what the millennials really want. Shouldn't we if we have a business? Shouldn't I know what my new customers expectation is from me? >> And one thing expectation a millennium is do it my way individualized to me. the the the difference. Look, if I would go to a McDonald, I would say I take a number one. The millennial says a number one, but no tomato, two slice of pickles, >> individualization. >> Mhm. >> And if I run any business, I have to understand that there is individualization is expected. >> Was that not the case before or that was always? >> Oh, much less so. Much less. >> Much less so 40 years ago. >> Much less. Really? So you just expected whatever you sold I accepted as a customer. >> That's it. Yeah. So how do you so so so how do you differentiate between the speaker that came before you where he says new new new what is ever what principles are evergreen and what principles are changing what's changing that you have to adapt to >> the way it is done changes the way it is done and of course customers expectations will change I tell you a funny story on customer expectation when I opened the first Ritz garden at that time the first plastic card keys came out which today is norm well this was nearly unheard of they call them wing cards at the time and I said since this is new we do that >> you were the first >> I was very early this and it was it's a good security piece but our guest checked in and said you're a luxury hotel give me a plastic piece >> wow >> so 6 months later we changed the locks because that was this silly thing was overwhelming to customer that I would give them Wow. So they saw it as cheap, not as a >> and but but wait a minute, three months, three years later, they said, "You give me a hard key. That is very dangerous. What if I lose and they come into my room?" So we change locks again. Yes, you have to go with the customer, but on the end is how I do it. It's how they feel what I'm doing. In the end, I have to tell them I care for you. By that action, they don't know that I care. I just responded. >> But by by me saying friendly, instead of saying hi, hey, saying good morning, sir, how are you today and tell you with my eyes, I am here for you. I respect you. >> Amazing. So, so the question now, here's the question I got for you. >> You go from keys to card to what is this? I want a key back to key back to card three years later. >> Question for you is >> who do you listen to? How do you know the right move is to go back to keys? And the right move is to go back to cards. >> Is it the complaining customer? Is it majority? Is it employees? What patterns makes you help help you make that decision? >> You you don't listen to your mother-in-law. That's a that's a study of one. A complaint is also a study of one. You make customer service thoroughly ongoing. You have to understand what the market wants. It's not the individual. And that's a that's a bad thing companies do. Particularly entrepreneur owners, the billionaire owners, his friend tells him and then he comes and change it all because my friend told me that's a study of one that you just don't respond to. You have to understand what the market as a whole wants. >> How do you do that? by customer studies. We we of course it was easy in hotel. We had a I had a customer analysis done for I knew every month in every hotel in the world what the customer satisfaction was, what the employee satisfaction is, what my economics are and what my future indicators are. That's the only thing I need to know. The rest are delegate. The rest are delegate. But if the customer satisfaction intent to return was not there, we then could dig in why into the various studies and we analyzed if if there are in every hotel the same trend. >> Got it. >> So we know what is there. We then tweak constantly you tweak your so to that you keep on serving the customer the way the customer wants to be served. like what what what is AI doing right now to the hotel and hospitality business that some people are using that you'll say I'll never do and what is AI doing to the hospitality business that you love? >> Well, I I I'm not there. I mean I'm generationally cannot quite accepted AI yet. Oh, and but I'm saying I work with a technical group and we are leader in the technology that we that has created for hotels. >> It's Capella. >> No, that is the hotel company. I'm working with a group KYC that puts technologies into into hotel. So, so we so we know everything and we partially AI for instance in AI I have I can do everything but I what is happening because of the AI is nearly every brand larger brand is becoming a commodity now means you check in with your iPhone pretty soon that's what you do you check in you call the elevator you go into your whom you would check out and so on. That means it is a sh a commodity that offers shelters sleep. Hospitality cannot be replaced by AI. I still have to have a human being I would still have if I was running a hotel I would do that but I would have somebody on the front door that says welcome and walk to you to the elevator and say I'm here for you. you respect it here and not just the AI but but it's driven of course the company has to make an three month report to Wall Street so have those people stay in the front but that's the end of hospitality but that's why small hotels who do it will be the leader of excellence >> small hotels >> that do it yeah >> because they're able to control more of it >> they will control more often and they will and they will be success successful because of their hospitality and not just because of shelter. >> So then scale is harder today the bigger the company is because you can maintain customer service. >> You you could if you if you're willing to spend the money for it but but but but large companies don't because they're they're pushed by by shareholders to make a little more more profit. >> Who's the bigger company today like you know uh uh that you still look at and say, "Wow, good for them." Big companies still maintaining customer service. >> Uh Oberish is pretty big and becoming big but there's still attention uh Rosewood are still paying attention to customers somewhat >> and but you know you see most big names that you know and I will not repeat the names are becoming commodities very fast. Do you uh uh when you when you sold when you stepped away from Ritz, what year was that when you stepped away from Ritz? >> And well, I I have finished my work with Ritz in 2002. >> 2002. >> Yeah. >> And you went to Ritz what year? >> Uh 1974. >> From 74 to 73. >> End of 73. Yeah. >> The lady that was here, she said something. She said um she said the uh uh Ritz went from in the mid n in 1991 having employee turnover at around mid50%. >> And then by the time it was done it was around low 20%. That's the stats that she's given 18%. >> Right. >> And >> and the industry was 120 >> right? I mean it's it's a it's a 365 24/7. You guys are always open. It's you're never closed. What did you do to, you know, lower retention as increase retention as much as you did? We >> we touched on it. We we offered purpose. >> Outside of that though, outside of that, what else did you do? >> Yeah. In this selection, we were very careful. We were very careful. We had a selection system. be very careful and we established standards already during the interview because you know people don't seem to get that most most what you want all of us from an employee is the right behavior behav but but behavioral analysts working with University of Colorado and University of Frankfurt on that >> behavioral analyst will tell you behavior cannot be taught after somebody's 16 years old. >> Wow. Uh yeah. How? Unless unless there's a significant emotional event in your life. >> Makes sense. >> And interviewing for a job is a significant emotional event. And what do we do? We just ask questions rather than establishing standards right there, behavioral standards. And said, Patrick, you know, we have a attitude in our hotel, in our company. We really we are petted about it. We are very friendly to every guest. In fact, within 10 ft, we look him in the eye and say, "Friendly, good morning. Can you do that?" What will he say? He will say, "Yes." >> Sure. Yes. >> And well, wait a minute, Patrick. I'm very serious about that. He will say yes. Again, I just established a new behavior in you for your benefit to be successful. Timeliness very important to So, I will stop trying to stop. But, I do that and then orientation first day of work, which every company does wrong. Period. We didn't do that. I went to did the orientation. I role played how to say hello in front of every new every in every new hotel and every takeover I was the one. >> Teach me how do I say hello? >> I said okay. So you're a guest. Here's a guest coming within 10 ft. 10 ft is the essential moment. But within 10 ft they make a decision about you. Ask your mega about them. Society lies about those things. You should look s baloney. We human beings. We cannot help it. We make a decision about the other person. So what do decision do I want you to make about us about me? I want you to make a positive one. That's why we wear the right uniform. That's why we groom right. And that's why we look them in the eye. No matter what we're doing with 10 feet. It's a non-negotiable. That's what we do. We look him in the eye and said, "Good morning, sir." Or, "Good morning, ma'am. How are you today?" Now, watch me. Good morning, sir. Good or good morning, ma'am. How are you today? Welcome. >> And you role playing this with >> I role play that. And I role played how to talk to each other with other employees. >> How do you do that? >> Well, if I walk by, if I we working together and I walk, I want I said first of all, do you want a good work environment? >> Yes. >> Oh, yes. So, okay. Patrick, the people in the environment are responsible for the work environment. So I walk I want a good work environment. I walk by you and I go say good morning Patrick. How are you today? And you may just say but tomorrow morning I do it again and pretty soon you will say good morning or how are you? >> I'm responsible. I am responsible my work environment. Have you heard me all? And everybody will say yes in the room. Orient. The day of orientation is a very significant day. You see, we interview I interview you. >> Mhm. >> I really want you. >> Okay. >> The shop is open, but our orientation day is not for 10 days. So, I'm going to say, Patrick, I'm going to put you on the payroll, but you cannot show up. You cannot. But when if you show up, you paid for the next 10 days. But that's the day you start working because I want you to have a significant emotion when when we do orientation. >> Stop it. >> Yeah. >> So you hired me. >> Yes. >> You pay me those 10 days. >> Yes. >> And even the orientation is not in 10 days. >> That's right. >> Why are you doing that? >> Because if I let you before without having the proper orientation, I didn't use the significant emotion then to teach you the right behavior. >> And what is the right behavior? You were trying to teach me to pay me 10 days that I have. >> I'm repeating the things I I told you dur during the the interviewing process. The orientation is a day when we teach you again. Here is how we behave. Here's how the guest is important. Here's how we treat each other. You are part of something. Well, know let let me put it this way. How are people being oriented? I can tell you if you worked somewhere, I can tell you how you were oriented. Everybody orients like that. If you come to work and the boss tells you the rules of the company, here's what we do and here's what we don't do. And then you get a handbook with more rules. And then you get insurance papers and all kind of paper. You go through all this work. And that is the that's the day of orientation, first day of work. And when you finish with that, the boss makes his pathetic team speech. We're a team here. Yeah. without giving purpose. >> A team is a group of people who work toward a common objective. Sure. Not given just we're a team here. And what's next? Oh, now Bill the new way work with Fred. He's here 9 months and he knows the ropes. Somehow you're in rope business here. Now you turn him over to Fred and on the way to the kitchen Fred tells spill the new way that this company is no good. That is day of orientation instead of the day orientation saying here's who we are. You're now part of us and here's how we who is our customers and we are happy when they're here. We respect them. Here's how we show them respect. By saying welcome, by responding to them, by looking them in the eye, by caring for them. That's our that's our part. You Patrick, we have to give human beings purpose. But we have to at the same time tell them the motive of our purpose. >> What what did Adam Smith say? Wait a minute. 300 years ago. >> Wealth of nations. >> Yeah. But he wrote another book about the behavior of the human being. And he said impossible that people can buy into orders and direction. >> Okay? >> They can only buy into objective and motive. What what on what we do? We give orders and direction >> instead of giving purpose and motive. That is the the millennials say, "What's in it for me?" >> Mhm. >> Well, tell them if we accomplish that. Here's what you will make have more opportunities. You will make more money. You will be respected. We'll be honored. That's what's in it for me for you. And that's why we have this beautiful purpose. And that's why we come to work. We do not come to work for the function. We're not chairs. >> How do you teach um how do you teach and she talked about it here as well that day. How do you teach employees to confront each other? What is the format of confronting? management to employees, employees to employees. How do you teach me to do it? >> Yeah. Well, first of all, turn it around. We had in our pockets first class cards and everybody was encouraged to use that card. If they see anybody doing something good, a fellow worker, write down first class and give it to them. Or when I walked on, people gave me first class cards. So that's the opposite. That is right away establishing the environment that you're here to deal with your with your with your fellow workers in a positive mode. >> And then what what happens the more first class cards I get? >> No, you just collected the first No, I have 20 first class cards. >> Are you recognize the person that got the most first class cards in a month? >> Monthly, every department recommends an employee of the month. >> Mhm. that employee. All employee of the months have a dinner. One of them gets employee of the of the month total there for each department, but one gets for the hotel. >> Got it? >> There 12 in a year. That's once a month. One of those 12 becomes employee of the year. It becomes a vacation paid vacation with a with a with a spouse and cash >> paid vacation for spouse with spouse. You find them a spouse or you don't find them a spouse. I don't think you're in that business. That's a different business. You don't want to say that you'll attract a lot of different customer. >> Tell me they make a lot of money. >> Make a lot of money. Yeah. You can't do like only Ritz. If you did like something called only Rits, not only fans, it would be a different business model. you'd be in. >> Success is built on how you think. Influence is built on how you show up. Every detail matters because presence speaks before you do. This is more than style. The future looks bright. So, let's stay in this. So you so I get first class cards, but still because when you're talking about this, the reality of running a company is you're not hiring everybody, right? You have direct reports who have direct reports and you have a chief HR officer that the interviews come through. How are you teaching me to hire Ritz type of people to the company? What am I looking for? You're not doing 100% the interviews. How do you teach me? Oh, well I well because I when you came in you we you were taught and everybody understands the very the very minimum everybody every everybody goes through orientation and managers go through special orientation. I gave every manager leadership session. The way our teaching worked beautifully because we were mind you we started with no hotel. So every hotel we had was was either new or take over. >> Got it. So you had an added you had an advantage. >> I had an advantage. I opened every hotel. >> I got it. >> I also knew all employees knew me. It wasn't them. >> What a point. >> It wasn't them in the corporate office. You have to overcome the them because if I don't know you up there >> in my insecurity, I will pl you what is wrong up there. because I if I don't make it if I can't live up by the roots it's your fault you have young but but they they knew me that's why the big thing that happened in red car in in Ritzkon is the empowerment piece when the which was a which was a nuclear explosion in all businesses when I said I empower every employee to make a decision up to $2,000 if a guest has it but I do that. First of all, we did that very carefully. I didn't just say it. We taught I thought about it for a very long time. It was an economic decision. I didn't want to lose a customer because a customer that leaves unhappy becomes a terrorist against your company. You cannot afford that really. I knew from the behavioral analyst that 96% of complaints is people that want to get rid of their frustration. We learned I thought they complain on the front desk or the concier. No, they don't. They complain to anybody who listens. Anybody listens and if you don't accept it, so I had to make sure that a baso will accept as his TV the TV that didn't work. Forgive me. >> And so I didn't want customers to run out there and be unhappy. My guest is well connected. He calls his travel agency and said was no good. His travel agency is part of a consortium 500 travel agencies who want. So I want to be sure that everybody leaves us an ambassador. >> So I had to teach our our employees how to handle any complaint >> and say at the same time I trust you. In fact, you can make a decision up to $2,000 to keep that customer. >> How much did that end up happening per month? Like at its peak, how many people use the full $2,000 at its peak? >> In the last three years, it was there once. >> Oh wow. >> The rest was the bus boy saying, "Did you have a nice stay with us?" "No, my TV didn't work. Please forgive me about my TV. I will buy you breakfast." And guess the complainer now is embarrassed that he complained and leaves as an ambassador rather than so. But we certified every employee how to do it. >> So So were you employee number one? >> Pardon me. >> Were you employee number one in Ritz? >> Yeah, sure. >> So you're the founder, president, and COO of the company, right? The co-founding member of Ritz. So from one employee to 47,000 employees. You've been part of that entire process. >> I when I left, we had 25,000. >> 25,000 when you left. I think today they're at I don't know what the number is. That's higher number. But from 1 to 25, that's 100% you. Question for you. Did you guys buy other hotels or no? >> Yeah, we talk about Yeah, but wait a minute. We didn't own hotels. We managed hotels, >> right? So, so for instance, >> we took owner own for example to talk over a hotel in New York. Consequently, I inherited a union. >> Got it. >> None of our none of my hotels I opened San Francisco. New union was picking in us for three years, but it never became union. So when you took over when you're so you're taking oper like for example two properties are opening up here in PMPO one is Ritz private residence one is Waldorf Atoria I went looked at a couple of them and they'll say Waldorf is going to be managing this property for 30 years. >> Yeah. >> So you you were managing those hotels servicing those hotels. Okay. >> But but we insisted we wouldn't have written a contract anymore unless you signed 50 years. >> 50 years to you guys. Yeah. >> And what is the business model? How do you get paid? I get I get a percentage of sales. >> Whatever sale they make, you make. Is it profit or is it rev? >> I make of sales. If if you you own the hotel and the the sales 100 million, I get 3 million. >> Got it. >> And you may be losing money to operation. >> So no matter what, you're making your 3 million. It's more like a consulting firm. >> Yes. In a way. Yes. But I also have an incentive after after you make that service. I am sharing 10% of whatever in the profit after. >> Got it. >> So I have an incentive to mega profit. >> So if I'm doing 100 million, no matter what I do, I got to pay you three million on my revenue that goes to you. What is my uh what is your incentive to make my 100 million 200 million? >> Well, I get I get an incentive on and anything over a certain profit. >> Is it an accelerator? Like does it get really bigger or >> No, no, it stays >> fairly at the 3% number. >> Yeah. But but at the same time I I I I drive sales up which in which I get my 3% on on the sales. I drive the rate up. I drive the income up and of course I drive the profit up and the profit. Now now there is an exit clause for you the owner. That means we establish in the beginning who would be my competition. Who are the three best hotels in town? If I don't, if I'm not within 5% at least what I do, you can exit me. You can throw me out. >> That's in the contract. >> Oh, yeah. Oh, yeah. >> But they also want the name Ritz Carlton on the on the property, right? They don't they don't want to give >> It's not only It's not only hotel that's most likely, >> of course. Yeah. Restaurant, all the other stuff that's benefiting as well. At the peak, what was the revenue of all the hotels you guys were managing at the peak >> under your watch? Well, world world worldwide we were close to $2 billion. Two billion including clubs and stuff that we had everything included. Yeah. >> Got it. So two billion 60 million goes to you guys. >> Yeah. >> Got it. That's a pretty nice revenue going to you. >> So you made some real good money. >> Yeah. >> That's great. So but going back to it. So you would come in and your job was to inject the spirit and your philosophy to the way we managed our hotels. >> Sure. >> That's what you did. >> Sure. >> Okay. So, >> and the processes make sure the processes and I love that. And by the way, the lady said the following. She says, "You guys have this thing." And by the way, correct me if I'm wrong. I'm just giving you what she said. She said they did an you guys did an engagement study >> to identify which employees fell where. You guys found out that you call them superstars or invincibles where 32% of employees who were energized and committed to do their work. Then 51% were neutral. You guys call them just there. They're just there. And you can correct me here. They showed up and do what is expected but a little more. And the last one was cave which was around 17%. This is constantly against virtually everything. This is what the lady >> I never heard about. >> This is not you. >> That wasn't me. What do you think about this analysis? >> It's ridiculous. >> Tell me why it's ridiculous. >> I I >> This is why I came to the source. I want to know what you think. >> Yeah. Yeah. Okay. I >> Rob, are you tracking? Rob, were you in that meeting? Am I giving numbers that were numbers that were given to us? So, please continue. >> It's It's nearly pathetic. I'm Please forgive me. >> Okay. >> I mean, please forgive me. >> Tell me why though. Tell me why. >> Well, because because that means everything is wrong with the selection process already. If you if you if you hire those poor those poor percentages, then you better start selecting. Stop get somebody to help you selecting employees. >> But you said your retention hit 19%. >> Oh, between 18 and 20% was >> that means you fired or lost 18 or 19%. >> Yeah. That's you want to have 10%. Because you want to renew a little bit. So why did you lose 18 or 19%. >> Oh well partially because people moved and or partially or or we did make mistakes. But when I make a mistake I have this now I have to ah this employee really didn't work out. So let's look where we made our mistake and tweak our process. Did we hire them wrong? Did we orient something go wrong? I have to go back and tweak my processes and not the employees. And if I have those numbers, that means my my processes that that says your processes are really screwed up. Start over. >> That's what that says to me. >> Okay. H how many times in your career did you fire people? >> How many people have you personally fired? >> Well, I look at general managers. I roughly five or six. >> Five or six you fired in 30 years at Ritz >> from 91. Yes. 20 years and Ritz. That's between Hold it. That's between Ritz and Capella. So in 30 years Yeah. >> Okay. So in 30 years you fired five man five GMs >> channel managers. General managers. >> Who how often did you fire people at Hyatt? How many people did you fire at at Hyatt? >> Oh that was earlier and I wor was working different. I I I didn't fire general manager but managers a lot. Yeah. >> A lot. What's a lot? 50 100 200 something. Okay. So tell me what got what did a person do to get you to a point of wanting to fire them? >> Okay, for example, I as a leader we we talk about delegating and so on. We kind kind of what Tesla what what you delegate you delegate except you don't delegate your vision and your purpose. You doesn't you don't you don't delegate the standards. >> You don't delegate the values. You don't delegate those things. They delegate hard things. So, but you let people do things and then you measure and make sure they happen. You cannot hope. Then hope is not a strategy whatsoever. So, so you measure and you you establish the you you establish the the expectation you expected the expect. So, so my expectation for example was and there was a key element here employee satisfaction X customer satisfaction 92% top box intend to return intend to recommend 92% minimum and that was made very clear if I hire you as ch I said Patrick now understand that is understand I have no right to compromise >> I am here for all concerned >> sure >> my my right of compromising is over. >> Mhm. >> So my expectation is X. Do you think you can handle it? By the by the way and by the way my role is to help you. >> Okay. >> I'm here available. Call me anytime. I'm here to help you. I will come to your hotel and spend time with you. But I'm here to help you. But here's the expectation. Here are the expectation. Customer satisfaction, employee specification and so on. And I delegate you and here's how our rules when you go to rotation. How here's how we do it. They learned that the employee is a part of the company not just working for the company. They learned that any manager that every employee works in an environment of belonging and purpose. Do you understand this Patrick? I would say belonging and purpose. So we go through all that and then you have the precise numbers and every year the precise budgets numbers everything's clear but now I see the customer satisfaction which was my key on the end of the month I see you are 86%. But 92 is the minimum standard. So I call you party the guy you know he said horse no problem we're working on it. >> I got it. >> You will have careful customer service. You can dig into it. I don't have it. I don't look. I have no time for that. Was it front desk? Was it food? Was it What was it? Correct it. Next two, next month is 94%. Now, Patrick, now listen buddy, you understand? I'm cannot compromise that. You understand? I'm getting upset next month 85%. Patrick, find a chair. Put it in the corner of your office because your your desk will be mine. I'm moving. I will move to the hotel. >> You're going to tell me this? >> Yes. >> And then how much longer after that are you firing me? >> Oh, you I would I would keep you if you stand if you stay >> at 80. >> If you stay in the hotel and work with me and correct it till this 92 and keep it keep it there, I'm fine. But if it start slips again, I said, "Patrick, do me a favor. Leave." You know, when when you start, >> your number was 92. >> Yeah. >> Month month by month by month. So at the beginning >> Oh, yeah. You can have a month slip. That's no problem. >> Totally get that. But what I'm asking is so so every month when you would look at reports and data beginning of the month when all the numbers are done, it's you know January many things are data. But what I'm saying is like at the end of the month, month is over, it's a new week. What reports did you want to see at all the hotels? What numbers did you want to see? >> Customer satisfaction, >> that's it. >> Employee satisfaction, economics, comparison, and the future indicator of business. It had to be above very year ago. with the indicator a year ago was we have we have already hypothetically now a year ago today we have we had for the year thousand reservation today I want to have more than thousand for the next year you understand >> you beat your prior bets I fully get it yeah >> yeah so so that that was one of them then measurement of course I looked what I looked at what was done what the business were last month did we live up to the budget how are we doing it according to the budget Certainly I looked at the economics of course I looked at the employee satisfaction. We did only one survey but it changed slightly by telephone calls from employees coming in and the the ser the satisfaction survey in for employees changed. I look for one one question in the employee survey >> I that I insisted to be there that said would you hire your mother >> would you hire would you recommend your mother to work for our company >> would you if your mother look for a job would you recommend that she works for us >> are you asking me >> that's what I did that's what we it was >> I don't know if I'm recommending my mother to work at the company you know so what would you do >> in my com >> are you asking a question to say do you love the so much that you would recommend somebody else. >> That's right. >> My dad's 83. I don't know if I'm recommending him. Although he would be great customer service. >> Would if it was possible, we recommend it. Everybody understood that if if they say no question. >> That's your most important question. >> Yeah. Most important question. >> So it could be warded for would you recommend >> 36 questions. 36 when I looked at that one. >> Right. Right. >> But but but then I looked at the overall satisfaction of >> Give me some more questions on surveys, employee survey. What else did you have? Do do you feel part of the do you feel part of the company? Okay. >> Are you do you know career your career path and so on? >> Do you know your career path? What else? >> Yeah. Most of it sended around. >> How many questions is it? How many total? >> 36. >> 36 questions every month. >> Yeah. No, no, no, no. That survey was only done once a year thoroughly. >> And what what month did you typically do it? Uh or well depends on which hotel when they open. We usually did it three months after they open done that same month every year. >> Uh I got so interesting system. It's based on when they open up. It's not calendar. So it's not like December or January. No. >> So 3 months after they open up. So it it wouldn't make sense to a different kind of a business. So different kind of a business, >> you do it annually and it's anonymous. You don't know who's answering it. It's just giving you data so nobody feels uncomfortable not putting it right. And then how are you doing customer satisfaction scores? >> An outside company call in. We they get the number the >> outside company calls the customer. >> Yeah. Yeah. And they give you the analysis once a month. I get the analysis for each hotel in tender return. And so so so now I'm moving to the hotel and the and and the general manager is with me. Now most most of them don't quit. I consider them to be fired. They quit. >> Mhm. They have to sit in the office with me and I'm making all decisions and so they're embarrassed and they quit. But what did I do? I looked at the service. It's it's so simple everything. It's so simple everything. I looked at the customer service. Where were they where were we impacted negatively by the doorman? They were not friendly. So what I do? I go sit down with all the doorman say now guys please help me. It seems that we didn't help you or didn't train you right and I'm here to help you to become a respected because you're not. But I'm here to help you and I'm accepting that we made a mistake here somewhere. So help me. Guess what? Four weeks later it was corrected. It was it was so simple every time. It it it is it is it is not rocket science. You go and talk to the people connected to the process. But I if you're not you're living in tailorism. Tailorism said here's terrorism said in the industrial revolution said hire people who fulfill a function we think and they do. But this is ridiculous. After they do they know better how to do than I do made my think in my office instead of going to them and say what can we do? >> No I love that. I love that. So, but how did you teach me? I come to you and I say, "Hey," and again, I'm talking for specifically this part because when you're talking about Ste Steven Cvy and seven habits of highly effective people and then you said if a person after the age of 16, that's how they're going to be unless if they have a life-changing event which Stephven CVY would call paradigm shift, right? To help somebody have a paradigm shift. What would you do for your management team to have paradigm shift? So for example be beginning of the year you're doing a kickoff meeting you bring your leaders in and if you did what would you do to create paradigm shift in me one of your leaders >> well well I with with the leaders is easy I mean I I I'm the expert >> speaking into the mic >> yeah with the leaders is actually pretty easy because I'm I'm the the standard setter I I'm the the objective setter I set objectives and I asked them I asked my leaders my hotel leaders when I was a manager I asked my department leaders the same thing by the way. I said okay tell me what they did the last three months to make sure that you have a better hotel. I asked them all tell me what is the standard how your hotel will be respected a year from now. I want I want to see if they have a vision. That's how if they have a vision. Look I I I visited a hotel. In fact I visited Milwaukee. The general manager picks me up. The chain manager picks me up in the airport, which I always do, and I get the the same story, which is of course a lie. We're so happy you're visiting because nobody wants corporate to visit because we're so proud. And I'm in in a limo. And I ask him all kind of questions. And then I asked him, "What will be your the position of your hotel? How will it be respected in the in the city a year from now?" And he said, "If I had a bigger ballroom, if my restaurant wasn't on the second floor, if this hotel would be closer to the city center," with other words, he made excuses for a vision he didn't have. I I I visited a few days later Columbus, Ohio, similar city, similar hotel, built by the same architect and I was the general manager and he said, "You can check me in a year from now we will be respected and be the pride of the city." >> He says that to you. >> Yeah. And I realized he he said here somebody has and when you walk to the hotel can feel in his hotel in Columbus people feel part of it. The other hotel they work in there. Do you remember this guy? The the >> Oh, yeah. Oh, sure, sure, sure. No. And then I said, "Wait a minute. I'm going to make a study of all channel manager who has a vision, who doesn't?" And for the next three years, I asked everybody the same questions. And after three, mind you, it's a study that I made. It wasn't scientific, but I I'm generous when I tell you there were five leaders. The rest were all managers. Now, they managed good results. Some of them, >> out of how many people? >> Out of 65. out of 65, five were leaders and the rest were managers. >> 8%. >> Yeah. And and now wait a minute. Some of those lead some of those managers had good results. >> Sure. >> And and but by by the way the worst ones and and this is pretty common became the recognition as manager of the year. They became a trip around the world and so on >> in in Ritz >> not in Ritz >> in Hayatt >> in other companies. >> Okay. Right. >> No. Why? because they didn't paint anymore and they didn't take took the flowers away and no and and they were applauded for making more profit and became manager of the as they're destroying the brand. >> Why? >> Because that's the only thing corporate measures because they don't measure that's why I measured number one customer satisfaction. >> Tell me your number one manager you had. Give me the profile of this individual. Three, four, five, six things you can think of. What made him so special? Number one, the best one. >> Number one, absolute relentless communication with his employees. They knew what was going on. They felt part a relationship in which the employees felt part. >> Mhm. >> What was number one? >> Okay. >> Process management with employees in involved in building the process. >> Tell me what that means. Unpack that for me. >> That means in the book complain and room service, slow room service. He go he goes to room service and says the order taker bus boy va cook work find out the root cause find the root cause of find the root cause why we have slow room service compliance and the the people connected to the process with the employees worked on it. I tell you his result I tell you a result he had that is unbelievable. We we when we when we you you start you learn you learn the second day the non-negotiables which everybody gets in in their pocket. If I catch somebody not carrying that in their pocket I have a problem general manager or dishwasher I want you to carry it because that's who we are and these are the non-negotiables. So >> may I? >> Yeah I I give it you as a gift. It's in my book by the way. >> I love it. >> This is the Capella. Has it changed anything with risk? Oh, sure. >> So, it's different than Ritz. >> A little bit. A little bit. A little bit. And and and Ritz changed it after I left. >> Well, I agree with you that it changed. So, this goes to every employee. >> Every single employee >> at Capella. >> At Capella. When you start working, you get it in your hand. You can learn you learn it. >> I want to go back to this number one manager of yours. So, number one, >> that's what I want to say. Okay. Go for it. >> So, so this when we took over that hotel, it was so strong union. and was the worst employee survey and the worst case customer survey ever had New York. This manager got into New York and the employee slowly adopted that. I tell you how well he changed changed it. Two years later the the union contract was was due. The the employees insisted that the union adopt us. That's a general manager who was leading his people who were part of the people >> for the union to adopt this. >> That's right. the employees insisted on it. One of the So, so what what did he do? What did he really do? And that's what I'm appealing to every every work every boss. He offered them to be part of something. Even Aristotle said, you cannot be fulfilled in life unless you have purpose and belonging. Why wouldn't we offer that to our employees? That is really my number one point. Offer them purpose. Offer them belonging. Don't don't make them chairs. My major de remember the one. >> Mhm. >> When I left there after three and a half years, >> he said, "Come here. Look me in the eyes. Promise me you never go to work. >> Promise you me not to become a chair." >> This is when you're leaving. when I'm leaving three and a half years later, you know, I was 17. >> This the guy that impacted you heavily, not the GM, but the other guy. >> Yes. Yes. Promise me you to become a chair. Because if you just go to work for the function that you fulfill, >> you're a chair. You're fulfilling a function. >> You have to have a high intent. The high intent is excellence in what you're doing. >> Promise me you don't become a chair. >> Yeah. >> Okay. So relentless communication with employees, process management, root cause. What else made that number one >> environment of belonging and purpose and purpose? >> Got it. Got it. So those three things. >> Yes. >> Promise me you won't be a chair. Okay. So question for you. >> And and again he was relentlessly working on old process and continuing all he was constantly seeking if if a it's very important very important here. If a problem repeated itself, he was right away and said, "Okay, let's look at the process. Let's find the root cause." Why this process gone? A root cause analysis was his strength. And and you know, here's the thing. If you find root cause of your mistakes, you become efficient because by eliminating the mistake, you improve the product and lower your cost instead of cost cutting, which means you take something away from the customer. >> Question this guy, who did he end up becoming? He ended up becoming a region a vice president in in the Beverly Hills Hilton for for those hotels and he run for many years. He just a year ago and so retired from there. >> He ret you still keep in contact. >> Oh yes, absolutely. >> So there's a friendship. >> Oh sure. >> Incredible. Well, friendship behind my back, some of those guys got together, created a reunion for me a few months ago, and people came from Europe and Asia and all over. They're all running major companies. >> I I know what happened. The truth is I know what happened. They got together and said, "Hos is getting old. Let's >> let's get together before he dies." It's >> you know that is true. Let me tell you though, let me tell you one thing that this is very important for the audience to know this. Uh you're uh 19. So you're how old? You're January 10. So you just turned >> 87 3 weeks ago, right? Okay. >> So Mateo May, he brings you in. >> And I said, how does he look and feel? He says, "Oh, he's so strong." I said, "Tell me why." He says, "I tried to take the bag from him." He said, "No, no, no. You can't take this back. There's a lot of money. I can carry it myself." Even at this age with the level of intensity that you have, it's so impressive. So I got a question for you. >> There's a book that was written five years ago called After Steve >> and a book is about after Steve Jobs, what happened to Apple? Okay. When Tim Cook took over, what happened to, >> you know, when you left Ritz in the early 2000s, what happened to the standards after Ho? Were they able to maintain it? Well, let me tell you one story. I have to be careful here because I signed that I would would not make disparaging remarks. However, >> 20 years you got that's a long time. >> However, our most complimented non-negotiable in Ritz was number 16. It's number 12. Number 12 on this one here. >> Yeah. >> And and Kabala escort guest until they are comfortable with their direction and make visual contact with their destination. Do not point. Okay, this was number 16 >> when that was the most complimented from the guest non-negotiable. People only said I I asked from this I came from outside and they walked me all the way there. I cannot believe it. >> Mhm. >> When I left, they eliminated that one >> because it cost money to take somebody away from this. >> Stop it. the most complimented point by customers was eliminated and that that I understand where I come from because nobody quite understood how deep those feelings were you you know it was just wow that's what we do >> nobody looked up for the analysis that was most complimented on so but but altogether you who is rated number one today in the world Capella there's a company created afterwards Where's where's where's Ritz in that analysis? 26. And those are facts. I can say facts here. >> You were number one when you guys left. >> Oh, sure. >> They dropped from 1 to 26 and Capella's number one. >> Yeah. >> How important was it for you to prove that even afterwards you're going to continue not stop? >> I can could do it any time. I could do it any forgive me because I would concentrate on the human being and on the process that I do. I would I in the meantime I have have to learn to even better select employees be more respectful for them and in particular it's easier today because everybody complains about the millennials but come on learn how to how how to handle them and do it. >> I agree. >> I agree it's a lot of time well they've changed they're lazy they're this. >> Yeah. Come on. >> Yeah. You you you're you've become a softer leader. >> You you you're the leader. You're the leader. You have to figure it out. >> Yeah. I agree. You know what's crazy? When you read body language books, you know what they say about the lines in between the eyes. Yeah. >> Do you know what they say about it? >> No. >> Highly highly intense competitive individuals. >> Okay. Okay. >> You have those two lines. >> You have those two lines right here is what you have. So you you're a very rare combination of extremely charming and you know it. You're very charming. Very. >> And you have a fun side to you that it's it it also feels like it's fun working with you. But my god, I feel the intensity and the seriousness that you're not going to compromise the standards for nothing. Is that a fair assessment? >> But I but let's face it, I have no moral right to compromise. >> I have no moral right to compromise. Of course not. >> Tell me why. >> I I I know my objective is good for all concerned. >> In that moment, I would be going against the against the owners, against the employees, against society, even against God because I I question myself. Would God approve? I crushed myself very careful. Is my objective? Would God approve? In that moment, I painted myself in the corner. I can't just compromise anymore. You know, that's one of the big problems with management. They want to be want be known as a nice guy. That's not my business. When I make a speech, I don't go into the speech so that people think I'm a nice guy. I go into that speech so that I give something. what I think what you think of about me but in particular my age what you gonna do fire me >> but when did you believe in yourself to know your philosophies worked at what age were you bulletproof confidence that you know what you were doing >> when when I went halfway through my time in in u in hyatt I I was I I talked to hotel I met it a major success and I was I knew the philosophy works I was It wasn't so much I am I'm the right thing. No, but the philosophy of respecting the employee and loving the employee and make sure they're aligned but not compromising and understanding the market and pushing those things together >> that that in a board meeting is fluffy conversations. >> Mhm. >> But the same people have egos and feelings and totally ignore the feeling of those two entities that make a company. If you have a business here, you have a business here. Patrick, walk in here at 3:00 in the morning. Is it a business? No, it's not. >> But now it is a business because you have people in here. >> So it is the people who make it a business. I have to accept that. >> That's a great point. Very good point. But so you were in your 40s when you realized you were bulletproof like you were confident in your philosophy. >> I was totally confident then because it it worked. there were successes and I knew I knew in that moment I'm giving I'm giving to people I'm giving successes to people you know that is one of the honest and we have to be conscious of that too >> and and and and I I'm happen to be believer so what and and and one of the key elements that I and and and Jesus forgive me that I touch on this for a moment is love your neighbor as yourself wait a Are your employees not your neighbors? Are your guests not your neighbors? They are my neighbors. Do I love him as myself? >> But I cannot single out one or the other. I have to love them as a whole because otherwise I'm going against one and the other if I just single out. >> When did Psalm 94 get a hold of you that I'm going to take you under my wings? How old were you? You talked about Psalms 94 somewhere. >> Oh yeah. Oh well, growing up uh in a Lutheran church which is very Bible beating oriented. >> Mhm. >> We had for three years before you get confirmed with 14, you go to Bible class, the teacher, the pastor gets to know you well and when you get confirmed gives you word for your life and he gave me some Psalms 914. He will take you under swing on his >> 914. Got it. >> Yeah. Yeah. And it is hanging in my kitchen. >> How old were you? >> 14. >> At 14, he told he gave you that. >> Yeah. Yeah. And it was with me ever since. It is with me. And is hanging in my kitchen. >> Interesting to know that he's with you. He has your back. >> Yeah. And and and you know some as a young man and so I forgot it. But when something went wrong, I went to look. Wait a minute. Where are your wings? >> Where have you been? I thought it was a promise. >> Yeah, >> that's funny. So now building the business, you know, and by the way, it's funny when you say Ritz Carlton. It's it's clear because I go to Ritz a lot, but I had a bad experience with Ritz two months ago, and I said, I wonder if horse would even allow something like this to happen. This doesn't make any sense to me. I was I went to an event, Ritz Carlton. Uh every uh uh 3 to 6 months, we would do an event at the Fort Lauderdale Ritz. No problem. This last one we go there, my EA says, you know, they put us in a different room. I said, why is that? We booked this 30 days ago, 60 days ago. He said, "I don't know. They put us in a bigger room." Well, I'm not looking for a bigger room. I want a smaller room because I put sticky pads on the wall cuz we're doing a strategy session with our executive. I want that room. They changed it last night. They can't do that. Well, I talked to the director. He said, "Yes." I said, "Bring the director, Rob." We get on the phone with the director right before the meeting. This is 7:57 and meeting starts at 8:00 >> and the director's not coming upstairs. And finally, I'm like, "It's been 13 minutes. Where is the director? I'm talking to the other two boys." Wow, horse. I said, I'm going to go see the director myself. I go downstairs. I'm at the front lobby at the Fort Lauderdale Rids. He's behind the desk and I see him. I finally I say his name and uh I said, I don't know what his name is. I can get it right. I said, hey, Jose, are you going to make me stand here all the time? Are you going to come and talk to me? I've been asking you why did you change my room? 30 seconds later, he comes out and he's looking at me. I say, why did you change the room? I always get that room. Look, we just had to make the decision. Last night, I said, I'm going to go to the room right now to see if somebody else is there. You can't do that. >> So, me and my security Dan, who was somewhere around here, >> I met him. >> You met him? He's got the tattoos on. It's like a very friendly guy. So, we walk up to uh um we walk up to the room and they're running after us >> and I go in the room. Nobody's there. >> I said, "Why don't you give me the room?" So, then afterwards, I'm trying to find out what's going on here. One of the guys that works at Fort Lauderdale, Ritzy comes up to me. He says, "Patrick, I told them, don't change the room on Patrick. He's not going to like it cuz he follows the content." I said, "I still want to know what happened here." Anyways, >> the room was given to a soccer team, whatever, because they were doing massages there and nobody was there. Remember, I booked this room. >> Yeah, >> it's the room I like and I'm a Beag customer, right? >> No explanation, nothing. >> The next day, Rob, can you text Mate? I want to make sure I give the right first names. I don't want to mess this up. Uh uh. So then the next day, Mateo calls me. He says, "Look at the email we just got." I said, "What's the email?" He says, "They send us an email saying they're apologize uh for what happened the day before and they want to give us 50% of the cost for the room back." >> And I said, "Mate, I don't care about the money. I will never all or nothing. I will never go to that Ritz Carlton in Fort Lauderdale ever again. I said there is no way this is horse horse's standards. So I'm telling him this and they're going back and forth, back and forth, back and forth and it was done. I was so disappointed. And you know what it made me think about? Here's what it made me think about. Here's a challenge horse and you got to coach me through it and I need your help with this. Hear me out. And you you don't know where I'm going with this, but I think you you'll see it here in a minute. I'm a founder of an insurance company. We build it. We grew it from zero to 60,000 agents. We sold it. We changed a lot of people's lives. And we did something nobody thought was ever possible. Our mission statement in July of 2009 when I came up with it two and a half months before I started a company was saving America by bringing back the free enterprise system and hope to American families. And we took this concept. I was dressed as George Washington. My wife was dressed as Lady Liberty. We had a 40ft Mount Rushmore on the stage. And we told everybody, we're going to save America and we're going to help people through free enterprise, getting people to become insurance agents building their business. We did something nobody thought was going to happen. One office, Northridge, 50 states, we grew it. I sold the company 3 years ago. I haven't been the CEO for one year. I'm gone. Okay. The standards are the standards that you create. >> How do you deal with looking and seeing if those standards are being maintained or not? by the leaders that come after you. How do you manage that yourself? Because I I know just listening to you right now, >> it's I got an email from a friend in Asia. It's on about an experience in Ritz Carlton and it it gave me so much pain. Still gives me pain. You cannot help it because if you have born an organization like you have you give birth to that you put pride and fulfillment into it. It is not a a place it's not a work is a fulfillment there and done it if it is totally mishandled and here 20 some years later I'm still hurt and in pain about it. I I I can't I have a hard time. I try and I I don't I try not to stay in the init because when you walk into it I'm I feel I'm a stranger. Some of them I walk into I feel I'm home still. I'm I'm home. Very few. Very few. Forgive me when I say those things. Ritz Carlton. Don't sue me. Uh but it it it is if you have value in what you did, if it had a meaning, if it was a purpose, you cannot help but get hurt because that which you created, it's a it is no different than if uh Picasso would sit there and you would scratch on his painting, he would be very hurt. It's his painting. It's his creation will be heard. You cannot get away from that. And unless we just created a business, the heck with it. >> But if that business was created with the heart and with the soul, which hopefully we do as human beings, uh particularly as creator, the creator, you get hurt. You cannot get away from that. I'm I I was so hurt a few days ago. Few days ago. And I got that email. I was so hurt. But I still have it on my phone. I was really hurt. >> 20 years later, you're still hurt. >> Yeah. And I walk sometimes often in the one that they mentioned. Could it be any other brand? Yeah. Yeah. It shouldn't be. It should be in there. I had a call one day from Shanghai from a friend who walked into the Ritz Garden. Maybe when I was around the Ritz Garden, I said, "I'm walked just in the Reds garden." I I and darn it, I could have complained not seen the sign. I would have known it's a rich garden. I could feel it. People how people looked at me, how people say sir or people help me. I would have known it's a rich garden unquestionably. That's what you want to create. That's it. But you can but you can create you can create that with a hardware store. You can create with that's the what I mean it's hospitality that makes a difference that makes a decision. It's not a product you know by the way hospitality let's see what it is really it's service everybody talk about is hospitality here. The first person who taught hospitality was St. Benedict the creator of the Benedict monasteries throughout Europe. He sent a letter to the head of his monasteries in the year 500 and said if a guest arrives treat them as if it was Jesus himself. >> But otherwise treat everyone as if they were the most important people in the world >> and and and he recommend in fact if even if you're on a fast break your fast if the guest by themsel and have dinner with them but after you wash their feet. Now how close do we come for that? Why wouldn't we try and come close to that in businesses? Isn't that much more fulfilling for us rather than just fulfilling a function? Yeah. No, listen. The guy that you went into your room who runs our cigar lounge now. His name is Mikuel. I have to give him a shout out. Mikuel was a general manager of an Italian restaurant here that I would go to three times a week. I told you the story. >> Yeah, but No, no, no. You used to three days but you ended up going five days. >> Yes. But let me tell you what happened with him. Finally one day he wants to start his own thing. I said why don't you come here and run the run this whole place. The feeling he gives you horse. >> He's able to make the customer feel like you're the only thing that exists in the world. It is such a valuable >> skill for a human being to have. It's such a valuable skill for a human being to have and I'm willing to pay premium for that. It's a very very valuable thing for somebody you work hard, you want to go to a place to be left alone. So where do you go to right now restaurant? Where do you go to right now where you feel like the service here is impeccable? What are some places you go today you like the service? >> We have some small places not known in Atlanta. You see when I I travel still 100 days a year. I used to drive over 200 days a year. What happens when I arrive somewhere? They pick you up with a limousine. They take you to gourmet restaurant. I don't want to go to gourmet restaurant. When I come home with my wife, we stay home or we go to some similar. But people know us there. And so you have the attention because they know you and people say, "We're glad you're here." And that's what you want. If if that gentleman in the in the ritz here would have said to you, "My gosh, please forgive me. I messed up." And >> I would have moved on. >> There you are. >> I would have, by the way, I would moved on the moment if he would have just came up. >> Yeah, sure. >> And give me the attention and say, "We messed up. He told me the truth." And if there was a valid reason why they moved the room, I would have had no problem. I would come back. >> That's what what we what we certified earlier. We talked about that every employee on the on problem resolution we certified every employee 24,000 employee around the world >> and they said the first thing is you you listen to the complaint you listen then you show empathy and then you apologize as if it was your own but you own it and then you make amends and 50% is not an amend situation like we will not of course we will not charge you of course need not we give you 50% no of Of course, we will not charge you because we mess up. >> Yeah. I forgive me. >> Yeah. And that's what it was. By the way, the guy that helped us out, >> his name was Juan. Very nice guy. He said, "Patrick," I told him, "Don't do it." The director of events was a guy named Chris. I won't say his last name. And then the other guy that called us the next day, the director of operations was a guy named uh Sam. And Jose was the GM. And I think Jose is the one that sent the email for 50%. I was very turned off. I was already turned off by that. >> I mean 50%. >> I I could care less about the money, >> but it doesn't matter. >> Who cares about the money like you know all you have? So again that that's the challenge, right? A brand if the if the existing founder, driver, CEO doesn't run customer service properly. Starbucks hires a guy that comes to them. It's a previous guy from Pepsi who used to be a consultant for some big consulting firm. They bring him in, 18 months, revenue drops. It's a messy of a culture. Then they bring a guy named Brian Nickel. Yeah. Brian Nickel comes from Chipotle. He gets in, he changes the culture. Starbucks is back on the rise again. One great leader can change a company. >> Oh, of course, of course. Because you you you you as a leader, you establish the philosophy comes from you because people immediate below you copy you and it goes all the way down. believe and if you do something negative they think you want that and that's it all or all standards are gone that's why I say that you you don't compromise standards you own the standards as a leader you own the standards and but coming down all all to to a simple thing I cannot expect my thousands of star of of Starbucks to all each one be singly trained by But they all know they all should know here's here's a standard we are here to care for people. They have to know that and then and and they have to be reminded of that. We remind those 20 things you cannot go to work. You will be reminded of one of them today. >> Today is number 12. Tomorrow 13 and 20 days number 12 again. >> I love that. Pointing finger. There's a bathroom horse. You want to use a restroom >> right there. Walk down here versus >> and done it. four cars and they get lost. >> I mean, >> yeah. Versus somebody takes you there. So, >> and then we taught them of course you would take them there and you said you you create a relationship. You say, "Have you tried our restaurant? Are you a hotel guest?" Yes. Have you tried a restaurant? I hope you had a chance. If you're outside, but you Oh, you didn't don't send hotel, but you should try the restaurant. Everybody likes it. So, you have conversation and you're selling something at the same time. >> Selling something. Yeah. You're What would you say is your biggest gift? Like what's your superpower? >> Mine? >> Yeah. What's your superpower? >> Oh, relentless. >> Relentless. Yeah. Would your wife say the same thing about you? >> Say you're relentless. >> Probably. But but in in in a positive way, think about wife. Think about marriage. >> I I It's the same thing. What what what's your high intent? What is your When I got married, before I got married, I picked I saw my wife and I was so much in love. I mean, come on. I mean young man you look wow wow this beautiful wonderful human being and we going to get married and then I thought wait a minute I know friends are getting divorced because they don't feel like it anymore and then I establish my high intent I will be in love for the rest of my life in that moment and that is the model of leadership have intent purpose but Then you have to commit yourself to it. Not not to have a pipe dream >> and then you have to initiate the things that make it happen and keep focus on it. And that's where people break down. They focus all of a sudden on an excuse. >> What was your ide philosophy in raising kids raising Christ? Two things we want want to accomplish. My wife and I and please forgive me everybody. We want them to be believers. >> Okay? And we want them to have understand the difference between wrong and right. Integrity, people with integrity. >> That's it. >> That's it. That's it. Those are the key things that we worked on, prayed for, and were successful. >> Are they in the business you're in or No, >> no, not at all. Not at all. >> Is it two girls or four girls? >> Four girls. >> Okay. I want to make sure I get that fact right because two places said two different things. >> Yeah. >> That's great. So you don't >> even even even family you have to have objectives. My my objective was to be in love with my and I am in love with my wife. But I work on my mind even for when I drive into the drive and the gate opens. I say thank you God for my wonderful wife. I can't wait to take an arm now. >> Affirmations. >> You have to you have to work on it. I mean if if you let if and and and I'm multi-minded on that. First of all, I wondered for me. Secondly, I I see the end of family happens and that it will be the end of our civilization unquestionably unquestionably if as family goes. So I am sell about what is marriage work on it. I I I ask in every in every speech I ask them all guys in this room when have you asked your wife last time how you can be a better husband? And she'll tell you. I saw that interview. >> And after she cries, she will tell you. >> She will tell you. Did you Did you guys ever have a moment where it didn't work out? >> Oh, sure. Many really in between. Not No. Where it didn't work out? >> It was like close falling out big fight. >> Not quite. No, not quite there, but there was. Sure. >> Yeah. How do you overcome that? >> Sure. Sure. Well, by by sitting down, talking and and admitting that you were wrong. It was was my my wife was 14 years younger. So I'm married. I'm 40. She's 26. And we have a have an argument and I start screaming and she said, "Why do you scream? Why don't we talk about it? Maybe you're right." Oh my. She said that to you. >> And I said, "Here, this kid is teaching me how to communicate. >> Good for her." Wow. And and I and I realized I didn't want to talk about what if I'm wrong. >> Wow. >> Yeah. >> Let's talk about it. Maybe you're right. >> Maybe you're right. >> And you guys been married now what? 47 years. >> 47 years. Yeah. >> Unbelievable. Good for you. >> Oh, it's great. >> Good for you. Respect for doing that. >> What a great thing. >> Unbelievable. >> What I mean look what is this marriage? The the the only God ordained union. The greatest union there is. Why wouldn't you work like crazy on it? Mhm. And she was a partner with you while you're building, traveling, moving, all this stuff. >> Yeah. Yeah. Yeah. Wow. Let me tell you, I I I admire her for she she raised children and I was on the road and and there too I come back and I said, "Here's what we're going to do." And I said and she said, "Whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa. Here's what we have planned." And I had to learn in the beginning said, "Wait a minute. Here's this is how." And he said, "Well, you weren't here. We had to make decisions. I had to learn to communicate that way and respect decisions that are being made with much more input and points that I don't wasn't even aware of." >> You were not there. >> You were not there in that. So you couple other questions before we wrap up. You won the Malcolm Balridge um Baldridge National Quality Award twice. That's correct. 92 and 99. No other company has ever done this before. So what is the significance of that? Cuz that's straight up from the White House, right? That's straight from the DC. What is the significance of that? >> Well, it's it's a fantastic thing that the government did more intensely that happened during the during the 80s when the Japanese became major competitors to us. They were taking over. They're buying everything and controlling and product and cars and everything. No, we did magnum TVs when when the when the commerce department said we have to study how to be more competitive with the with the Japanese studied the number one companies in the world studied the companies that were sustained leaders in their product for many years why and so on found commonalities and created a criteria and afterwards said we have to find out who in America has comes close to that. Mhm. >> So we can make it an example for other companies. >> Got it. >> So when you studied and done apply, if you win the baldish, you are obligated to open your company up for other companies come in and learn >> for a year free. >> What a concept. >> Yeah. >> For a year for free. >> Yeah. We had every Monday 20 30 companies there to learn. We created an learning center. No, I figured out how to make money on it, you know. So we we we started the 7:00 Monday mornings. So they had to check out on Sunday. Check in on Sunday. >> So they still got to book the room. >> That's great. So the companies would come and learn >> come and learn from us include including job Steve Job before they went into before they went into retail. >> I was about to just say Apple. So Steve Jobs came to you. >> Yeah. Yeah. including for retail, including Disney was there many times and and and so on. People coming in and learning what are how do we work the processes, the measurements, the process, the improvements >> and so on and and and we were pretty good at as I said our chimentia was kind of best at the improvement, the elimination of process permanently. I tell one story in the book if you read it. Uh uh excellent wins and excellence in room service room service where we had for six years a complain I was a general manager of the first one obviously there was no other hotel during my time the complaint room service I managed it like a normal manager I said read my lips fix it doesn't work that way you have to find out their process I learned very carefully from the bald office how to do that. I had my first British meeting uh somebody set it up. We were voted best hotel company in the world and and I had a lot of complaints when somebody said well I understand I they asked me best hotel company I said maybe we're the best of a lousy lot but we're not very good and he said you should look into the polish criteria went to went to Washington had a meeting with the head he explained me the criteria for half an hour I didn't understand a word he said literally and he said, "Do you have time for lunch?" I had lunch with him. Years later, he asked me when I was became an expert in the issue. Do you know why he invited you for lunch? I said, "Why?" He said, "You didn't understand the word I said." He knew it. I did. >> Why didn't you understand what he said? >> Fishbar charts and things like that. What is that? >> I see. I got you. So, he knew. And >> he said, "Man, you have to understand I left the school when I was 14 years old." That's right. >> I didn't go to business school. >> No college, no business school. >> But later when I was here, I took the courses in Cornell and so on. Yeah. >> Didn't you later on get a PhD or doctorate from some school? What did it honorary doctorate? What school was it that gave it to you? >> Uh um I'm sorry I said the word. When you ask me names, I'm always I always put in a word. Johnson and Wales. >> Okay. Got it. Very cool. Yeah. >> Very cool. So, so to Steve Jobs, what did he ask you when he was what kind of question? >> He came in, I wasn't involved in teaching him at the time. I was out in in in Asia at the time, but he came in to ask how do we treat customer? What what what do you think make us successful? How do we make them successful? By saying hello, but and he he picked up I know what he picked up first contact. we teach and that's what he he got it most of people don't get it even what we teach the behavior analysts tell you you make you make a decision about somebody when when you come with 10 10 ft so how do I make sure you make a good decision >> but wait a minute they make a decision about you so how make sure that decision is a good one that's why in when you go into they're going they have somebody staying there right away well dressed So say welcome can I help what what is the and they take you and and and we we had learned that from the behavioral analysts I work with behavioral analyst University of Colorado and and Frankfurt they said the decision is made about you the moment when we make contact that's why we taught you have when somebody comes within 10 10 ft no matter what you do you look in the eye and say welcome and so don't say hi when you say hi we are equal >> but if I say welcome and so sir and and so and look you in the eye I'm saying I respect you but at the same time I'm saying you can trust me I'm professional so we make sure that I hired kids from center city I've never seen anything elegant in their life so now we put them in a great outfit we we teach them not to use certain words don't say ever high don't say okay say my pleasure and so on and three weeks this kid meets potentially with the chairman of the board of bank of England and it works and it works. That's what he saw and that's what he how he created the retail and be impressed by the look of it. Have this positive in mind. We we looked, by the way, it's very important for people to know, business to know. We looked at 400,000 comment cards. Beginning we had comment cards. Cheddy Power analyzed them for us. Whenever the first >> 400,000 comment cards, yeah. What does that mean? >> Guess that commented in the room. >> Comment cards. Got it. 400,000 comment cards. Got it. >> They're not scientifically that important. The they the call in are much more scientific by the way. But anyway, when I had him, I worked with Chetty Power D Power was a friend. They talk them and analyze them and they came back and said 100% without exception 100% when the first contact was excellent never did a complaint follow positive subconscious whenever there was one negative in either reservation dormant or from desk always did complaints follow wow I mean wow so I have to make sure that my first contact that's why when you walked in first contact that's why you saw huge flowers first thing you saw everything positive in your subconscious so you feel positive about the rest >> what presidents did you serve or which world leaders came to you guys at Ritz that you had a relationship with >> was it a was it an ongoing hey we're going to come in we'd like to be taken care of >> yeah well I I knew I know Bush the second one very well >> okay >> I knew him very well and I knew Carter very well uh Carter In fact, after he was president, he had he later he had an apartment in in in when the when the library was built, but before they were staying in the rits and every morning he went ch I went chugging. We went chalking every morning. >> Oh, Buckhead in Atlanta. I got it. Makes sense. >> And we went chalking every morning. We come around the corner, people go to work and we say good morning, take a look. Oh, good morning. >> Of course, security was running with us. >> You felt safe. >> I knew them very well. Of course, I had with with Clinton gave me the the award. I spent time and and and Bush won gave me the award >> and Ford Fort was an owner of one of our hotels. >> Really? >> So interesting. >> I knew several of them. >> Got it. Very interesting. I because I can only imagine that everybody comes in. By the way, two questions before we wrap up. Patel Motel Group. What do you know about the Patel Motel cartel that you don't know anything? You know how they say they own 70 80% of the hotels and their business model and the way they do it from India when they come in. You know nothing about those. >> No, I don't know much about >> It's a very interesting story. >> I heard about them but I don't know much. >> Yeah. It's apparently they bring their families. >> Yeah. >> And so the families would live in five rooms and the families living in five rooms would allow them to charge the rooms at the lowest 29 39 bucks a night. So others would stay over other hotels and then next thing that's how they build their empire. Apparently now they own 70% of hotels in America. >> Yeah. Very interesting. >> I I don't think 70% but they own quite a few. >> That's the numbers that you'll read about. Yeah. Right. They're roughly 70% of all Indian motel owners. >> Oh, yeah. Indian motel. Third of all motel owners in America are named Patel. >> Yeah. Well, there are a lot of Indian hotel motel owners. A lot of them. They come in and that wasn't easy business to go in having some cash. They bought a motel and run it and then added added added. So, a lot of Indian hotel owners here. Yeah. >> Yeah. And of course a couple of very good TSH hotels is a very good hotel company. So yeah, >> Capella Capella Group, your your uh most recent one that you sold, I think you said 2017 and then finalized in 2019. >> You you built a lot of the hotels in Asia and I think one or two is in Saudi that you build. You can correct me if I'm wrong on these, but none in Europe. Why not Europe? >> We had one in Europe. >> You did build one in Europe. >> We have one. No. About one second. We're not owning. Yes, they own >> operating. I totally get it right. >> One was in Europe in this but when when I left they disassociate themselves. They were able there was a clause to get out when I left. >> I got it. >> So they they left. They're independent now. Great hotel by the way. Great hotel. >> What markets do you look at to say these markets are good to build a hotel? Is there anything you look at? What demos do you look at? >> Well, you know what I wanted to be I looked at this at the time and still the same thing. If you start a hotel company or you work hotel company, you want to be in in in New York, you want to be in London, you want to be in Tokyo, you want to be in at the time Hong Kong was a number one thing. Today is Singapore is equally important. Still Hong Kong is okay. But uh it used to be the financial place where you had to be Singapore today much so in the key places. No, but but my first hotel was Atlanta and then Dearborn Michigan and so on and I had to still make it number one in the world and we became number one in the world you know and I dealt later my competition was four seasons they were in London and in Tokyo and then in New York and then everywhere and I was you know now we we ended up to be in Tokyo and so on also and and when we when we opened Osaka we were immediately voted best hotel in in Japan and I I insisted Wherever we are, we're number one. Period. And I and I dealt with the general manager said, "Will you accept that?" >> Did you play sports as a kid? Where does your competitive fire come from? >> Why are you so competitive? >> No, I don't. No, >> you're very competitive. >> Mom or dad? Who's more compet Like cuz you're very competitive. >> I think mom. >> Mom. >> Mom was competitive. >> Yeah. >> Did mom and dad ever come to the States or No, they >> Oh, yeah. Oh, yeah. Yeah. Yeah. Well, uh you have to understand when I started off they were they my particular my grandfather they all were embarrassed that I want to work in a hotel business that's not what they did in Germany. You want to have a technical job if I would have said roofer >> that's honorable >> over a hotel >> that's honorable but in a hotel so my father thought I would work as a va for the rest of my life and and I was disappointed but then of course I had my successes they were very proud and some >> do you ever take your girls back to uh uh the city where you grew up in do you ever go and show the family there >> we spend every summer there >> every summer there. >> Why? >> That's who I am. And and I'm lucky my wife uh loves it as much as I do. Otherwise, I wouldn't have the house anymore. You know >> what's great about the city there now is a >> it's a village. It's a small village where you like like she just was there for a couple of days with my daughter and she she called me and said, "I feel this peace again. I walk through the little village. It's the it's it's dark and quiet, but I heard some people sing and the the cle club is rehearsing and I heard some and I said and the piece when I come walk in the house is a piece that I cannot find anywhere else and we have we feel that we feel that is a is a different life is but it's also I grew up there and I I I don't want to become somebody else. I want to be the boy from the village. You know that there's something about that. The home I'm and in the meantime I'm American. I'm and and I I love the country. I have the same fears and hopes that most of us have that the fears have developed dramatically over the last 20 years >> in America. >> What ways? Well, the values we we we had we we had a country give you an opinion about it and I hope that the world is not going to we had a country that had clear values with Judeo-Christian values. We didn't have to be believers but we had Judeo-Christian values. Now we have 350 million different values. Each one runs around because we said we didn't insist. We gave up teaching those values. We gave up showing consequentless if we don't including eternity teaching in school. We have given up who we are but we still want to be who we were. That's kind of silly but that's what we have done. And so we are on the on the edge of one way or another we talk about socialism and and the people that talk about socialism doesn't even don't even know what it is. I haven't heard anybody explain socialism to me or or even those leaders that are foreign that are against it. the key element that that America should know about socialism and doesn't if you look at the countries that were socialists including but but take Europe take all of the Eastern European countries for 70 years in socialism communism 70 take Russia out of the equation for a moment the other all the other countries in 70 years we talk about freedom there's something much deeper Show me one thought that came out of the those countries in the 70 years with others. You eliminate thinking and that's what we want and that's what we look at. Well, we learned before that and if we would still have Judea Christian values, we wouldn't accept it in the first place. That's socialism. But we talk about it. Oh, I all I can say to you, America, where the hell are you going? We still Oh, are we God shed its grace on thee? Yes, but my goodness, we have to We should really worry right now. We should really be concerned. We should really do something. >> What should we do? We should go de demand and and insist on thinking. Now if I am going to say men can have children or if I cannot answer that question that means I am not thinking anymore or I refuse to think if I am in a city like Detroit which is a disaster to a great extent please Detroit don't call me but it is I lived there for a while for 80 years yet I vote every year for the same every time for the same I am not thinking. We have to encourage that people think in our schools again that that at least they know a bit that what do you think about you have that again high intent. Why do they mar why do they march against moving illegals because they have no they have no intent they have no purpose themselves. They have no purpose. So you look for a momentary purpose which is gone and done you're really helpless purpose. We have to teach people again to have purpose, high purpose, purpose of value, purpose for a great country where we respect each other. Purpose of of of having a life that is fulfilled, where you can think, where you can express, go and look at them. Could could they express no? That's why no thought came from Eastern Europe. Those of us who lifted actually I lifted. I went I went every year to visit my cousins in East Germany. The stories I can tell you it's unbelievable and that's what we want because we have no higher purpose. >> Can you share one story? One story when you go visit East Germany from your family what they experienced. >> Okay. My my my my my cousin chief anesthesiologist in the number one hospital. I walk I walk the the the sidewalks without light and with holes in in East Berlin. I walk to her apartment, this old stairway with one bulb hanging down going into her apartment. She is a chief anesthesiologist. Her husband has this little technical magazine that he owns that he does that was lost ownership. In their apartment in the kitchen, they have a plastic square with plastic curtains as their shower. Okay, that's how you live. And they they have but they have applied for another apartment. The average weight for another apartment is 10 years. Wow. They also had applied for a car six years ago, but it's not there yet. Now you tell me this works and speaking up against it. They were not allowed. After all, you're not allowed to think. So how can you get creative? Now the wall comes down. Four years later, I visit them. They have a new house by river with two mats staying there. They live in a free country where they can work make a make a win. What do you what do you want? But they did work for that. Now you cannot live in a free country and hope that somebody buys it for you. That is that you sentence yourself into that position. Oh, but you sentence yourself. It's not others. You define yourself. Not the government, not the president, not the other race. You define yourself. That is the thing. And they they were defined by the government and suddenly come out and decide to define themselves as winners and they're winning. >> Yeah. Good for them. I mean, >> yeah. >> I I I went there in '89. I lived there in ' 89. And Germany was uh >> you guys in 1990, you won the World Cup. >> Yeah. >> Right. That's when the famous singer was Matias. >> Yeah. >> Was the songish something like that. Yeah. >> That's when David Hasselhoff was God. When Satines was the channel and you guys had a Wheel of Fortune called Rudy Tutti Frutti, something like I don't know what it was called. The show with the girl, >> you know, half naked girl doing wheel. Very weird. I from Iran. You go there, you're like, wait a minute. What's going on with Germany? >> What's going on? Yeah. >> I had a great time in Germany, though. at a very good time. Good memories in Germany. Horse, I can talk to you for hours. >> The amount of wisdom you have is unbelievable. And in my mind, >> I was hoping for this conversation and it was even a better conversation than what I thought it was going to be. >> Thank you. >> So, I appreciate you for uh coming down and sitting down. For the folks watching this, we're going to put the link below to the book, Excellence Wins. We'll put the link below for folks to go support this. The rest of the ideology will be in the book as well. Horse, thank you so much for this. It's a pleasure having you on. >> I I have gone through many session. It's how the discussion runs is always up to the interviewer. >> Well, I I it was very easy talking to and I learned a lot. Thank you, sir. Appreciate you. >> Delighted. >> Success is built on how you think. Influence is built on how you show up. Every detail matters because presence speaks before you do. This is more than style. The future looks bright.